Japanese-funded projects: Facing delays despite Japanese assurances. Assurances given to Ranil in July, AKD in Sept.

monson

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  • May 7, 2007
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    Despite the assurances given by Japan on recommencing 11 pending projects funded by it in Sri Lanka, actual physical work on these projects is yet to recommence, The Sunday Morning learns.

    Last week, the Japanese Government committed to resume construction on 11 projects in Sri Lanka that were previously on hold, as announced by the Government.

    This pledge, first made in July, was reiterated on 27 September when the new Government stated that Japan would fully support the new administration’s initiatives.

    Discussions regarding the revival of these projects took place during a July visit by a Japanese delegation, which engaged with then President Ranil Wickremesinghe about restarting Japanese Official Development Assistance (ODA) projects that had been paused due to Sri Lanka’s economic challenges.

    Key projects set to resume include the Bandaranaike International Airport (BIA) development, Colombo Port Eastern Terminal development, Central Expressway construction, and the digital broadcasting project, marking a renewed era of cooperation and development between Japan and Sri Lanka.

    Speaking to The Sunday Morning, Treasury Deputy Secretary R.M.P. Rathnayake clarified that the processes were already underway but highlighted that the situation was complex due to the differing progress of each project.

    “These projects are in different stages of implementation. Now, action has to be taken to resume these activities again. They have already started financing disbursements and the release of funds from the Japanese authorities has begun,” Rathnayake explained.

    One of the key projects, the second phase of the BIA expansion, has seen significant disruption. “The BIA second phase has to be started again,” Rathnayake stated, acknowledging the full suspension of this project due to funding shortages.

    “There is no delay. There are different stages of implementation. They are in different arrangements. Some are suspended. For example, the BIA project was completely suspended because of the unavailability of funding.

    “The Japanese and all development partners suspended further financing because we had defaulted on payments. Now that debt restructuring has been finalised, the Official Creditor Committee (OCC) must reach an agreement with its members and the members must sign an agreement with the Government of Sri Lanka. Only then can they officially provide the funds.”

    Meanwhile, certain projects are facing policy-related delays.

    Rathnayake cited the Light Rail Transit (LRT) project, which was cancelled under a previous government, as an example. “Now the new Government must decide whether to go ahead with that project or not. Once these policy decisions are made, the implementation part will follow.”

    Commenting on the broader Sri Lanka-Japan relationship, Public Diplomacy Division Director General Niluka Kadurugamuwa reiterated Japan’s strong and reliable partnership with Sri Lanka.

    “Sri Lanka and Japan are enjoying very strong relations. In keeping with that, Japan has pledged to the President that it will start funding and resuming these projects. These projects were stalled for some time due to the economic crisis, but with the new Government and the new President, it has pledged to resume the projects,” he said.

    These projects, previously stalled, are expected to recommence under the new Government, following Japan’s commitment to support Sri Lanka’s recovery. However, Kadurugamuwa admitted to not knowing the exact process or timeline.

    Despite this uncertainty, he expressed confidence in Japan’s reliability as a partner: “Japan has been assisting Sri Lanka’s development over the years. In July, there was an announcement and now there’s a renewed announcement. If it says it will resume, it will resume; Japan does not go back on its word. It is a very reliable and strong partner.”

    While the specific reasons behind the repeated announcements without clear physical action are unclear, Kadurugamuwa remained optimistic, stating: “I am pretty sure that the physical work will commence soon.”

    - https://www.themorning.lk/articles/9vVausdXkmu9ryLCR5i8