Monday, April 7, 2025

A welcome revival

by damith
October 20, 2024 1:00 am 0 comment 561 views

One of the most adverse results of the economic crisis was the abrupt stoppage of several important infrastructure projects mid-way or even before they were slated to begin. The countries which were funding these projects were rather reluctant to lend funds for the projects as Sri Lanka’s debt sustainability was in serious doubt.

There was another factor at play – some Government Ministers and officials had demanded bribes and kickbacks from the foreign Governments and/or contractors to give the regulatory approvals for the projects. These countries, which have no culture of bribe-taking or giving, resented such moves and cancelled the projects.

Now, with the country mostly out of the woods in an economic sense and with a new Government committed to eliminating corruption in place, many countries have again started funding these projects. In this context, two major stalled projects that are again being revived deserve our attention.

The first is the expansion (Phase Two) of the Bandaranaike International Airport (BIA, IATA Code CMB), the country’s main gateway to the world. Work began on this project 10 years ago under the auspices of the late Japanese Prime Minister Shinzo Abe, since it was funded by the Japan International Cooperation Agency (JICA).

As the project was proceeding, allegations surfaced that the Minister in charge had demanded kickbacks from the contractors to expedite approvals. This resulted in the Japanese Government ordering a halt to the project. Although the Minister in question was initially sacked, he was reinstated in the same portfolio after a sham inquiry, adding insult to injury and further straining our relations with Japan which went haywire with the unilateral cancellation of the Light Rail Transit (LRT) project from Malabe to Colombo.

The BIA project should have been completed by 2019 in the normal course of events, but it is now at least five years too late. In the meantime, the BIA has become even more congested with long passenger lines at check-in and immigration counters. It is already past its nine million passengers-a-year capacity. There is a paucity of jet bridges too, which has forced many airlines to park in the outer aprons and ferry passengers by bus. With tourist numbers poised to increase to nearly three million per year in the short-term, it is imperative that the project is completed within the next three years at least. Moreover, many airlines are waiting to start flights to Colombo while others want to increase the number of flights per week. An expanded airport is the only solution for these issues.

There is an eerily similar tale vis-à-vis the Central Expressway, which also began with much fanfare around 10 years ago. There were allegations that a senior minister in the then Government had demanded bribes from the local agents of the contractors. Again, this resulted in foreign investors pulling out from the middle section of the project from Kadawatha to Meerigama even as the other section from Meerigama to Kurunegala was completed on time. Unfortunately, this means that motorists emerging from the Outer Circular Highway (OCH) now have to take the regular Kandy road from Kadawatha to Meerigama to re-enter the expressway network to reach Kurunegala.

We hope that the Government will also expedite work on the Kurunegala-Dambulla stretch of the Central Expressway, since the latter city is an economic and agricultural epicentre. In any case, it was a mistake to build the Southern Expressway first as the Central Expressway is economically more significant. The middle stretch of the Central Expressway could easily have been built with the funds spent on the Matara-Mattala section of the Southern Expressway, which is used by only a few vehicles. It is also well-known that the estimates for this project were overblown due to corruption.

The Government should now focus on some other major projects that deserve to be fast-tracked. The resumption of the LRT should take priority. The cancellation of the LRT was one of the biggest blunders made in recent times. If the project went ahead as planned, we would be using it by now. Instead, due to the vacuum created by Sri Lanka, Bangladesh got a brand new LRT system which is now operational. Given that an LRT has the potential to take thousands of cars off the streets, the savings in fuel alone would have justified the cost.

The expansion of the Jaffna International Airport (IATA Code JAF) in Palaly must also be expedited, to allow bigger airlines to land there. Right now, with a runway length of only 1,400 metres, only turboprops such as the ATR 72-600 can land and take off at Palaly. Accordingly, two Indian airlines – Alliance Air and IndiGo – operate flights from Chennai using this type of aircraft. But extending the runway to 2,500 metres or ideally to 3,000 metres will enable bigger jet aircraft such as the Airbus A320 and Boeing 737 to land at Palaly. If this can be done, SriLankan and other airlines such as Etihad, Singapore Airlines and Akasa Air will no doubt consider flying into Jaffna, increasing its tourism and business potential. Jaffna, not Mattala, should always have been the country’s second international airport.

Apart from these two, the Government should carefully consider the other stalled projects in terms of economic viability and give the go-ahead if funding can be secured either from local or overseas sources. There should be no room whatsoever for any form of corruption. The tender process should be fully transparent, with newspaper ads for every step. There should also be a public progress update every six months or so. This way, the public will really get the true benefit out of their tax rupees.

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