The Oluvil Port, another loan project implemented in the Eastern Province of Sri Lanka, has now turned out to be another white elephant remaining idle for a dozen years, and the current government is now at a loss to determine ways to make it economically viable somehow, the Daily Mirror learns.
The loan agreement for the Oluvil Port Project was signed between Nordea Bank, Denmark and the Ministry of Finance and Planning of Sri Lanka on May 23, 2008. The total project cost was Euro 46 million, and it was completed in 2013.
Deputy Minister of Ports and Aviation Janitha Kodituwakku told the Daily Mirror that the port now remains unused, and the accumulation of sand dunes at the entrance to the harbour has made vessels inaccessible. The port has a basin for fishing crafts. The commercial port comprises 330 metres of quay with a water depth of eight metres, and the fishing port 200 metres of quay with a water depth of three metres.
Kodituwakku said that the Sri Lanka Ports Authority (SLPA) is now studying how the Oluvil Port can be turned around.
“We are now doing a research about the port and its viability,” he said.
The port was originally meant to cater to the needs of the eastern region of Sri Lanka and was given priority under the Nagenahira Navodaya Programme earlier.
Sri Lanka has five seaports, with two of them – Trincomalee and Oluvil – being on the eastern coast of the country. The successive governments have talked about making Sri Lanka a maritime hub, making use of its strategic positioning in the region with easy access to key markets such as India.
The Oluvil Port project is part of the long list of underutilised foreign-funded projects in Sri Lanka, with past governments failing to use them for the benefit of the nation. Several foreign diplomats in Colombo have been critical towards the political leaders either for not maintaining a conducive environment for foreign-funded projects to enter or creating the same for those projects which are yet to realise their full potential due to bitter political rivalry or corruption. Some examples are the Colombo Port City, the Lotus Tower and the Mattala International Airport.
The Colombo Port City project was launched in 2014, but even more than a decade later, the project is yet to reach its full potential. With 100 per cent foreign ownership allowed for businesses to operate in Port City Colombo, a robust regulatory framework, and world-class infrastructure, it showcases the instrumental facets to attract foreign capital.
Bureaucratic stagnation, slow progress in passing regulations, and a lack of government-led promotion have often led to prospective investors looking at regions other than Sri Lanka.
Meanwhile, India has offered US $ 62 million grant assistance for the development of the Kankesanthurai Port. However, the government has not yet decided finally on the project. Currently, a feasibility study is underway.