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China Communications Construction Company Limited (CCCCL) has announced that it is suspending work on the Colombo Port City Project, with immediate effect, due to uncertainties created by a review being carried out by the new government in the country. A sign on the site said that work had been temporarily suspended on the instructions of the Ministry of Ports, Shipping and Aviation and would only be restarted with the approval of relevant government institutions. The Chinese company promised to co-operate fully in providing various documents which have been requested by the Ministry.
A statement from CCCCL said: “The foreign direct investment for the creation of the Colombo Port City Project is US$ 1.4 billion and the project is estimated to generate 83,000 local jobs. The project when fully completed is expected to attract international investments with a total value estimated at US$ 13 billion.”
Partners for the Port City include several high profile global companies such as Aecom, one of the world’s largest design firms for urban development based in USA; Atkins, the world’s largest engineering consultancy firm based in the UK, and Swecom of Sweden, which is the master planning consultant for the project.
The vision for Port City is to establish Colombo as a key business and tourist destination in South Asia. “Port City is planned to be very much a city for the people of Sri Lanka to be shared and enjoyed by all Sri Lankans,” the statement added.
Media reports have suggested that CCCCL is losing US$ 380,000 a day as a result of the suspension of work. It is uncertain how long the project will be viable if delays continue and the impasse is certain to lead to a deterioration in relations between Sri Lanka and China, which is a major investor in the Sri Lankan economy.
