High altitude Sports training centre on
Picard Oliver, President Elipse Project SAS exchanges Technical Contract with Dr. Dr.D.M.R.B.Dissanayake, Secretray Ministry of Sports
Despite concerns over projects financial viability, Ministry Sports on Friday signed the technical agreement with the French contractor—Ellipse Project SAS to construct the multi-billion rupee high altitude training center at the Nuwara Eliya Racecourse.
The project includes indoor and outdoor training facilities at an altitude of 1868m (5708 feet) and will cost a staggering €75.5 million or approximately Rs 12.9 billion. The money is expected to be sourced by the contractor.
There have been questions regarding the economic feasibility of the project, spending a huge sum for a ‘fancy’ training centre and how would the administration generate returns on the heavy investment. However, according to the ministry of sports, the project is not a business venture but an investment to improve the general standard of sports.
‘This is not a business but an investment for the future,” Sports Minister Dayasiri Jayasekera said whether the project is financially viable for a country like Sri Lanka. “The recovery period may be too long but like I said we are not looking at this project as a business venture but a facility to take sports to the next level.
Minister also said they are expected to generate a considerable amount of foreign currency earnings due to its location which is one of the most favourable locations in the Asian region.
“We are going to offer this facility for foreign athletes at a very affordable price. If you look, two to three weeks training will cost around US$ 10,000 to 20,000 elsewhere and we will offer it less than US$ 10,000. This will help us attract foreign athletes,” minister explained while responding to questions from the Sunday Times.
The training facility will have an indoor sports complex, indoor swimming pool, multi-sport ground, cricket ground, 400-metre synthetic running tracks, 400-metre grass track, two indoor tennis courts, administration block and medical centre, apartment block and a hotel with 75 room facility.
The Cabinet recently approved the transfer of an Urban Development Authority (UDA) land (1 acre, 1 rood and 23.69 perches) to the Ministry of Sports the construction of the hotel. (1 acre, 1 rood and 23.69 perches)
Rejected by the Treasury’s Cabinet Review Committee (CRSC) on two previous instances–in 2009 and 2013–the project was pursued for the third time by the SLFP-UNP collision government. The Cabinet approval was granted in December subject to the Ministry of Sports obtaining all approvals from relevant authorities.
According to Cabinet Memorandum MNPEA/2017/068 submitted by Minister of National Policies and Economic Affairs, Elipse Projects SAS was selected by the Ministry of Sports to implement the project under financial assistance from UKEF’s (United Kingdom Export Finance) and Hatton National Bank of Sri Lanka. The Cabinet paper also says UKEF is to finance up to 70 per cent of the project price while the balance 30 percent is to be sourced through a local bank.
“Negotiations have been concluded to with the UKEF to obtain a buyer’s credit facility of up to Euro 51,576,006.15 to cover approximately 70 per cent of the contract price of the project and with Hatton National Bank of Sri Lanka (HNB) to obtain a credit facility of up to Sri Lankan rupees equivalent of Euro 23,952,694.76 to cover the remaining balance of the contract value,” the Memo says. The funders have offered a 13-year repayment period including a three-year grace period for repayment.
The project will start once the financial agreement is signed by the two governments—Sri Lanka and France.
“We are expected to complete it in three years and once we receive all clearance, we will start the project,” Minister added.