SRI LANKA News Extract Infrastructure 11-12-09, www.dailynews.lk Sri Lanka to strike oil, gas soon Sanjeevi JAYASURIYA Sri Lanka is to strike oil and gas as soon as the report on 3 D seismic studies are completed within two months. The study would enable to ascertain how much hydrocarbon deposits are available in the Mannar Basin. It is expected that the first barrel of oil could be extracted by 2013, said Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie at a media briefing yesterday. Cairn Lanka is commencing seismic acquisition in Mannar Basin with an investment of over US $ 100 million. Bids have been called for the remaining seven blocks and a Cabinet Paper has been already submitted. A production sharing agreement has been signed specifying as to how to share oil, what are the benefits Sri Lanka is to receive and the procedures to follow. Sri Lanka would receive a ten percent royalty on oil produced. “We are optimistic and investing a great deal of money to drill wells and remain focused on conducting the seismic survey,” said Cairn Commercial Director, P. Elangoven. It is important to carry out the work program on competitive rates. The availability of oil would depend on the data from the survey subjected to a review and analysis, he said. Cairn Lanka Private Limited, a wholly owned subsidiary of Cairn India, commenced its 3D seismic survey in the Mannar Basin in Sri Lanka. The program will fulfill the commitment of 1450 km2 of 3D seismic data acquisition and will be acquired by CGG Veritas AS using the seismic vessel ‘SR/V Viking II’. Completion of the data acquisition is expected by the first quarter of 2010 with data processing scheduled to be completed by mid 2010. Drilling, based on the interpreted data and subject to regulatory approvals, is expected to commence in the first half of 2011. Block SL 2007-01-001 was awarded to Cairn India in the bid round held in 2008. The block lies offshore Northwest Sri Lanka. For the Sri Lankan entry, Cairn Lanka (Private) Limited was formed as a wholly owned subsidiary of Cairn India, which now holds a 100 percent participating interest in the block. Cairn’s Forward Plan includes commencing a Met Ocean and Currents survey in January 2010, complete the 3D seismic acquisition program before the end of April 2010, initiate fast-track 3D seismic data processing and complete same within August 2010, complete final 3D seismic data processing and interpretation by about November 2010, complete all major drilling services contracting by about August 2010, finalize the drilling rig contract before December 2010 and commence exploration drilling (Well # 1) in April 2011. 07-12-09, www.defence.lk KKS harbour to be renovated H ARBOUR WILL PLAY KEY ROLE IN PASSENGER, CARGO TRANSPORTATION IN FUTURE: Dharma Sri Abeyratne In line with the rapid development process in the country’s sea transportation system, moves are under way to renovate the Kankesanthurai harbour at a cost of Rs 100 million. The renovation process will be carried out by the Navy. The Kakesanthurai harbour had mainly been used for military purposes. As a result of the peaceful situation in the country, the harbour can now be utilised for general activities. The renovation work is scheduled to commence soon. Jetties will be modernised and renovated while deepening the harbour bed will begin under the development process. Access roads will also be renovated. Apart from this, many other harbour related development have been planned aiming to convert the Kankesanthurai harbour to a commercial harbour. “The harbour will soon operate as a modern commercial harbour,” Ports and Aviation Minister Chamal Rajapaksa said. SRI LANKA News Extract Infrastructure The Kankesanthurai harbour can easily be used as a sea transportation hub for the North. It has been estimated that the harbour will play a key role in passenger and cargo transportation in the future. Moreover crops and other produce can be transported to other parts of the country via the Kansesanthurai harbour, sources said. 05-12-09, www.defence.lk Rs 1,500 m to develop Vavuniya Bandula Seneviratne Vavuniya North Group Corr. Vavuniya is to be developed as a modern fully equipped city by the Urban Development and Sacred Area Development Ministry. The proposed City Development Plan was unveiled at a contract signing ceremony held under the patronage of Minister Dinesh Gunawardena at the Vavuniya Kachcheri yesterday. The government has allocated Rs. 1,500 million for the first stage of the City Development Plan which would include the construction of infrastructure and other facilities including roads, markets, sports grounds, swimming pools and holiday resorts. Rehabilitation of reservoirs will also be undertaken to make them more attractive and functional. Minister Gunawardane who later handed over the City Development Plan to Vavuniya UC Chairman S. Nathan said the President and his Government had given top priority for the development of Vavuniya as a modern and attractive city which could contribute towards the nation rebuilding effort. The Minister and his party later visited the historic Sri Dalada Viharaya at Madukanda in Vavuniya to participate in religious observances and inspect the progress of the viharaya conservation work. Urban Development Minister Rohana Dissanayake, Parliamentarians S. Kishoe and Sivashakthi Anandan and Vavuniya GA, P.S.M. Charles were also present on the occasion. 13 airstrips in Sri Lanka to be renovated Thu, Dec 3, 2009, 11:05 pm SL Time, ColomboPage News Desk, Sri Lanka. Dec 03, Colombo: The Sri Lankan government has taken measures to renovate thirteen air strips in the country, the Ports and Aviation Ministry authorities said. The Ministry says under the initiative the runways of airstrips in Polonnaruwa, Hingurakgoda, Palali, Ratmalana, Koggala, Katukurunda, Weeravila, Trincomalee, Sigiriya, Batticaloa, Ampara, Kankasanthurai, and Vavuniya will be lengthened and widened to operate medium scale aircraft. The government also plans to import six medium-sized passenger MA 60 aircraft from China to promote the inland passenger transport once the runways are improved. In addition, the Ministry has taken steps to lengthen the runway of the Bandaranaike International Airport up to 3,350 meters in an effort to meet international requirements. [UPDATE] Sri Lanka President commences the constructions on beltway around Sri Lanka capital Mon, Dec 7, 2009, 08:13 pm SL Time, ColomboPage News Desk, Sri Lanka. Dec 07, Colombo: Sri Lanka President Mahinda Rajapaksa today ceremoniously launched the construction work on the first phase of the Outer Circular Highway, a beltway around Sri Lanka's capital Colombo. SRI LANKA News Extract Infrastructure The proposed OCH highway will start from Kerawalapitiya along the Colombo - Katunayake Expressway to link Southern Expressway crossing A-4 highway at Kottawa and the main A-1 Colombo-Kandy highway at Kadawatha. The 29 kilometer road project at an estimated cost of 90 billion rupees will be built in three phases - Kottawa-Kaduwela, Kaduwela-Kadawata and Kadawata-Kerawalapitiya. Construction of the first phase of the project, the 11 kilometer stretch from Kottawa to Kaduwela is funded by the Japan International Cooperation Agency (JICA). The planned beltway around the city provides access to the existing 'A' class roads at several interchanges including Kottawa, Kaduwela and Kadawatha. Minister of Highways T. B. Ekanayaka said the traffic congestion around Colombo and its suburbs will certainly be reduced after the completion of the highway. Mega road development projects approved in Sri Lanka Thu, Sep 3, 2009, 11:54 pm SL Time, ColomboPage News Desk, Sri Lanka. Sept 03, Colombo: Sri Lanka Cabinet has granted approval to several road projects in the country to upgrade and rehabilitate the provincial roads in Eastern and Northern regions. The Cabinet approved a proposal submitted by President Mahinda Rajapaksa as the Minister of Finance and Planning to enter into a Financing Agreement with the lending arms of the World Bank, International Development Association (IDA) to borrow Special Drawing Rights 70.6 million equivalent to US$ 105 million for the implementation of the Provincial Roads Projects. The project plans to upgrade and rehabilitate 200 kilometers of provincial roads in the Uva Province and 100 kilometers of provincial roads in Ampara District in the Eastern Region. The project, which will begin this month and expected to be completed in five years, is aimed at improving access to social and economic activities in the Eastern and Uva Provinces through the sustainable management of improved road infrastructure, the government declared. Another proposal submitted by the Minister Ranjith Siyambalapitiya as the Acting Minister of Finance and Planning received approval from the Cabinet today to enter into a financing agreement with the Asian Development Bank (ADB) for a loan of US$ 70 million (Rs. 8 billion) to implement the Eastern and Northern Central Provincial Road Project. The project at a total estimated cost of US$ 78 million of which US$ 70 million is provided by the ADB and the rest will be borne by the government, will rehabilitate 150 kilometers of provincial roads in the Eastern Province in order to improve the transport system in the Eastern and North Central Provinces. The proposed rehabilitation includes improvement of road pavements, bridges, drainage, and replacement of culverts of the proposed roads. The project is expected to be implemented by 31st December 2013. A separate proposal submitted by the President also received the Cabinet approval today to continue the construction work of the 4-lane expressway from Pinnaduwa to Godagama which comes under the Southern Transport Development Project. Funding for this segment of the highway has been secured from the EXIM Bank of the People's Republic of China. 26-11-09, www.dailynews.lk GOVT TO SIGN AGREEMENTS WITH INDIAN, CHINESE COMPANIES: SRI LANKA News Extract Infrastructure Northern railway line reconstruction expedited Irangika Range The Government will sign agreements with an Indian and a Chinese company to reconstruct the Northern railway line from Omanthai to Kankesanthurai next week.