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Land acquisition halts LRT?

08 Mar 2020

The proposed Colombo Light Rail Transit (LRT) project, stretching from Malabe to Colombo Fort, has been put on hold due to the Government’s financial constraints and inability to allocate funds for land acquisition, The Sunday Morning learnt. Project experts told The Sunday Morning that the Government was unable to allocate a total of around Rs. 7 billion as land acquisition cost for the project. This is the only commitment that had to be made by the Government for the project as the necessary funding had already been allocated through the Budget. They however warned that any kind of delay or stoppage of the project would cost the Government. The Government will have to incur a loss of around $ 100 million if the LRT project was to be suspended or if there is a delay as a result of renegotiations. In addition, there will be certain penalties from the Japan International Co-operation Agency (JICA) – the fund provider of the project – as Sri Lanka has already signed an agreement on the project, it is learnt. When The Sunday Morning contacted the relevant officials working on the project at present, they confirmed that there was a rumour that the Government was going to stop the project, but the relevant authorities were yet to be officially informed. Colombo LRT Project Director Eng. Commander (Retd.) Chaminda Ariyadasa told The Sunday Morning that they had not been officially informed about any sort of termination of the project and therefore the project management team together with the consultants are currently working on the project. “At the moment, we are going ahead with the preparation of the detailed design and bid documents for calling tenders, and it will be ready within the next three months. I’ve not been officially informed by any party on the termination of the project. Therefore, we the project management team are working with the consultants,” he stressed. He added that the land acquisition process was well underway despite any issues regarding funding. “The land acquisition process has already begun and if you consider the depot area, we have completed 90% of the land acquisition and that information has been forwarded to the (Government) Valuation Department. Once the valuation process is done, the team would negotiate the amounts with landowners. Funding for land acquisition has to come from the Government and the total cost would be at around Rs. 7 billion. Usually for any project, the donor agency would not finance land acquisition and compensation as it is the duty of the Government,” he noted.  


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