Government mulls alternatives for five Colombo mega projects
The government is reviewing five major projects in the City of Colombo coming under the Urban Development Authority (UDA) to ascertain its feasibility as they are ‘white elephants’ and running at a loss, a senior cabinet minister said.The UDA currently maintains completed projects of the former Rajapaksa regime for the beautification of Colombo including the Gold Centre and the Floating Market in Pettah, Arcade Independence, the Old Dutch Hospital and the Racecourse at a heavy cost.The monthly rentals from trade stalls at these centres were not sufficient to bear the cost and UDA has to spend from its budgetary allocations made by the Treasury from taxpayer’s money, Megapolis and Western Development Minister Patali Champika Ranawaka told the Business Times.
He noted that the ministry will decide soon on how to make these projects financially viable or to close down the current operations in projects like the Floating Market in Pettah. The outcome of urban development projects will not be sustainable and will be a failure in the long run if there was no public participation, he said, adding that the previous regime took decisions without consulting the public or any of the stakeholders. He said that without thinking of the ordinary arcades for ordinary people, international shopping complexes were made for few rich individuals at the expenses of the public, but nothing substantial has been done for the benefit of the common man.
The ministry is considering the possibility of attracting local foreign investment for Arcade Independence, the Old Dutch Hospital and the Racecourse to transform it to viable and sustainable projects looking at new business opportunities including hotel and mixed development, he added.The Arcade at Independence Square and the Race Course in Cinnamon Gardens Colombo with super eateries and shopping outlets built at accost of Rs. 800 million each were not generating profits and most of the shop owners are planning to close their businesses.
Some of the shop owners are not paying their monthly rentals to the UDA, a senior official said adding that the authority is incurring a loss of Rs. 3 million a month in maintaining these two white elephants.
The 500 million-rupee floating market is a complete mess where shop owners struggle to maintain business and the people have completely lost their interest in visiting the shopping complex.The Gold Centre project built at a cost of Rs.237 million at the former St. John’s Fish market in Pettah in close proximity to the popular Sea Street jewelry market is also running at a loss.Only eight out of 83 jewelry shops are currently engaged in business, but the people are not visiting these shops as they are able to buy jewellery at a lesser price from the Sea Street jewellery market, traders said. The old dilapidated Dutch hospital building was renovated and developed at a cost of Rs. 80 million but it is not generating much profit, an official said.