Colombo Port City Project stopped, loss of over USD 380,000 per day

Wednesday, 11 March 2015 - 20:08

China Construction Communication Company Pvt. Ltd (CCCC) categorically states that all construction work on the Colombo Port City has stopped; following the Sri Lankan Government’s official communication on 6th of March 2015 issued by the Secretary to the Ministry of Ports, Shipping & Aviation, communicating the decision by the Cabinet Ministers of Sri Lanka, to temporarily suspend ongoing work of the Project, with immediate effect.

The Colombo Port City project, which is a 100% privately funded foreign direct investment of US Dollars 1.4 billion by CCCC, began construction following the signing of an Agreement with the Government of Sri Lanka on 16 September 2014.

As a result of this suspension, CCCC estimates an initial direct loss for the company of over USD 380,000 per day. Further the interest on the financial loan obtained by the company for the development of the project is being paid, regardless of the ongoing suspension.

Over 200 meters of the breakwater constructed thus far, has been damaged due to the suspension, as the company is unable to take measures to protect the reclaimed land due to the suspension.

The reconstruction of this damaged land area will be an additional cost the company will have to incur, if and when the project commences.

The project employs approximately 1,000 direct personnel and a further 4,000 indirect employees, of which almost all are Sri Lankans and the sustainability of this workforce is also a concern for the company during this period.

The protection of the work done on the site to date is critical and the project’s suspension restricts the company from taking adequate measures to safeguard this work, including the breakwater and landfill. Currently the company is only performing quantity surveys at the site.

As a private foreign investor, CCCC reiterates that all stipulated processes required under the project agreement were followed before commencing the project’s construction in 2014.

CCCC, a ‘Fortune 500’ company and the world’s leading Sea Reclamation Company, is a responsible corporate, committed to fulfil its enterprise responsibilities through due process and diligence.

Without prejudice to its legal rights, the company assures it will continue to work with the Sri Lankan Government in providing further documentation and information needed to review the Colombo Port City Development Project.