Ministry of Foreign Affairs December 2016 Briefing Note Key Infrastructure Projects and Opportunities for Foreign Investment in Sri Lanka The briefing note presents key infrastructure projects being developed in Sri Lanka in the areas of urban develop- ment, sea & airport development and road development. This will enable the missions to promote investment in these sectors. WESTERN REGION MEGAPOLIS PLANNING PROJECT Overview FIGURE 1: PROPOSED WESTERN REGION MEGAPOLIS LAND USE PLAN The Western Region Megapolis Planning Project (WRMPP) is a major urban develop- ment initiative which focuses on developing the Western Province as a ‘megapolis’.1 A megapo- lis is characterised by a cluster of large net- worked cities which exist independently but are integrated. It is characterised by urban sprawl, high population density and a convergence of urban and suburban areas. Expected Benefits The WRMPP aims to position Colombo as Asia’s next ‘Global City’. The WRMPP envi- sions a spatial and structural transformation of the Western Province of the country to: ▪ Alleviate congestion pressures caused by ‘messy urbanisation’ ▪ Create the enabling environment to accel- erate growth to reach high income country status Harness the benefits of global technological developments2 Activities Source: WRMPP, 2016 The WRMPP identifies the medium and long term Current Status: Planning development direction of the Western region. An im- plementation framework will be developed and include Funding: Public-Private Partnerships the following: Total Estimated Project Cost: USD 83 billion ▪ Preparation of detailed planning & zoning for all Duration of the Project: Long term areas within the Western Region. Implementing Agency: Ministry of Megapolis ▪ Feasibility and strategic study for the identified key and Western Development catalyst projects.3 Compiled by Verité Research page 1 | 14 December 2016 Ministry of Foreign Affairs ▪ Identification and development of critical infrastruc- edge, or organisational strength are lacking to carry out ture projects. the proposed assignment and consultants are required. ▪ Project and land sale packaging. The Guidelines on Government Tender Procedure (2000) will be applicable to the procurement of private ▪ Land consolidation. infrastructure projects. Infrastructure development projects will include: Strategic interventions under the WRMPP have been categorised under ten broad themes: ▪ Power plants 1. Transport,4 Energy and Water ▪ Highways 2. Housing and Relocation of Administration ▪ Ports 3. Environment and Waste Management ▪ Airports 4. Aero Maritime Trade Hub ▪ Telecommunications 5. Central Business District5 ▪ Railways 6. Industrial and Tourist Cities ▪ Transport systems 7. Science and Technology City ▪ Industrial estate development 8. Eco Habitats and Plantation City ▪ Large scale real estate developments 9. Smart City Development Project6 ▪ Solid waste management 10. Spiritual Development Facilitation ▪ Water supply and drainage The interventions represent a non-exhaustive grouping ▪ Warehouses, housing, markets etc. of over 150 development projects according to either a ▪ Land reclamation functional or geographic basis.7 ▪ Other economic infrastructure. Opportunities for Foreign Investment Several international parties have expressed a keen Projects under the WRMPP will be developed under interest in the project. In July 2016, International En- the following methods: terprise (IE) Singapore, a government agency in Singa- pore, signed a Memorandum of Understanding (MoU) ▪ Public-Private Partnership (PPP) with Sri Lanka’s Ministry of Megapolis and Western ▪ Expression of Interest (EOI) - Request for Proposal Development to facilitate Singaporean investment in (RFP) - Tendering the Western Region Megapolis Project.9 The MoU aims to enhance business flows through greater access ▪ Government to Government to partnerships for the development of the Western ▪ Funding by WRMPP Region Megapolis.10 ▪ Fund raising by WRMPP etc. Contact for Further Information All projects will be subject to regulations and guidelines Nayana Mawilmada developed by the Western Region Megapolis Planning Head of Investments - WRMPP Authority.8 The Western Region Megapolis Planning 10th Floor, Wing “C”, Sethsiripaya Stage II Authority together with the Agency for Development Battaramulla, Sri Lanka. will be responsible for the supervision of the projects. Tel: +94 112186091 The methods of procurement will be based on the Mobile: +94 77 921 3601 Procurement Guidelines (2006). Guidelines regarding Email: [email protected] Selection and Employment of Consultants (2007) are Web: www.megapolis.gov.lk applicable in the circumstances where expertise, knowl- Image source: https://en.wikipedia.org/wiki/Colombo page 2 | 14 Compiled by Verité Research Ministry of Foreign Affairs December 2016 MATTALA RAJAPAKSA INTERNATIONAL AIRPORT FIGURE 2: LAYOUT OF AREA AVAILABLE FOR COMMERCIAL INVESTMENT IN MRIA Source: Airport and Aviation Services (Sri Lanka) Ltd, 2016 Overview Opportunities for Foreign Investment Mattala Rajapaksa International Airport (MRIA) is Expressions of Interest for foreign investment are ex- Sri Lanka’s second international airport, located in pected to be called from the Strategic Business Enter- Mattala - 24 km from Hambantota in the Southern prises for Investment and Commercial Operations of province. It is located in close proximity to several the MRIA. The following investment opportunities are tourist attractions such as Udawalawe National Park, available at the MRIA. Sinharaja Rainforest, Yala National Park, Arugam Bay ▪ Direct aviation related ventures: and the Galle Dutch Fort. – Use of MRIA as an Airline Operational Base/ Current and Expected Benefits Hub ▪ Passenger terminal with floor area of over 14,000 – MRO (Maintenance, Repair and Overhaul facili- sq. m with passenger capacity of one million passen- ties) for airlines gers per annum. It has 12 check-in counters and 2 – Flying schools and Aerospace Engineering gates equipped with jetways. schools ▪ Runway capable of handling the largest aircraft, – Aerospace Engineering namely the Airbus A380. – Cannibalisation and Recycle of Aircraft Parts ▪ Cargo terminal of 5,000 sq. m with the following facilities: Export cargo section; import cargo section; – FBO customs; airline offices; plant and animal quaran- – Aircraft Component Manufacturing tine; two cool rooms; special vault for high value items; 20 ha for cargo logistics; 50 ha for industrial – Aircraft Long Term Parking developments and space for bonded warehousing. ▪ Indirect aviation related ventures: ▪ Gazetted as a bonded area by the Government of – Hospitality, tourism, recreation & leisure, adven- Sri Lanka (GOSL) in February 2013. ture, freight forwarding, courier services, trans- portation ▪ In close proximity to the Hambantota Port and the Southern Expressway. – Hotel/Resorts – Recreation Activities and Theme Parks Compiled by Verité Research page 3 | 14 December 2016 Ministry of Foreign Affairs – Duty Free Shopping Complex (Branded shopping For Further Information outlets spa & therapy) Derick Karunaratne – Golf Course Development Corporate Communications Officer – Renewable energy industry (solar, wind turbines, Airport and Aviation Services (Sri Lanka) Ltd. etc.) Bandaranaike International Airport, Katunayake, Sri Lanka – Industrial park (manufacturing, packaging, ware- Tel: +94 11 2263140 housing) Mobile: +94 73 041799 – Agricultural products and perishable cargo for Fax: +94 11 2251995 export Email: [email protected] – Cruise Ship Transfers – Transit Services – Knowledge parks (schools, academies, universi- ties)11 Image source: https://commons.wikimedia.org/wiki/File:Mattala_Rajapaksa_International_Airport_Terminal_Building.JPG page 4 | 14 Compiled by Verité Research Ministry of Foreign Affairs December 2016 HAMBANTOTA PORT DEVELOPMENT PROJECT PHASE II FIGURE 3: LAYOUT OF HAMBANTOTA PORT Current Status: Completed Funding Agency: Export and Import Bank of China Total Estimated Project Cost: USD 800 million Duration of the Project: Nov 2012 – Nov 2015 Implementing Agency: Sri Lanka Ports Authority Source: Sri Lanka Ports Authority, 2016. Overview ation fuel and liquid petroleum gas. The tank farm has oil blending and fuel testing facilities, and the oil The development of the Hambantota Port is the latest terminals are equipped with 16 loading arms. major port related development undertaken by the Sri Lanka Ports Authority (SLPA). The Port is expected to ▪ Regional supportive infrastructure facilities include be developed as a major industrial and service port in the Southern Expressway connecting the business the South East Asian region with an attached industrial capital of Colombo and the southern region of the zone. This is driven by the rapid growth in the Asian country;13 Mattala International Airport; a State- market.12 of-the-art International Conference Hall; and a fully-fledged General Hospital with state-of-the-art Expected Benefits facilities.14 ▪ The Hambantota Port has approximately 800 hect- ares of land within its industrial zone, making it one Activities of the largest port related industrial zones in South The Hambantota Port project is being carried out in Asia. With zero deviation time from the internation- multiple phases. al shipping route, it is ideal to operate as a logistics Phase I of the project will provide bunkering, ship hub and ship repair yard facility. repair, ship building, and crew change facilities. Phase ▪ The port has been declared a Free Port and is I commenced