High Altitude Training Centre to become a reality soon
Government will soon sign the financial agreement with the French government to construct the multi-billion rupee high altitude training center at the Nuwara Eliya Race Course, Sports Ministry sources confirmed.
The finance agreement which has been approved by the Finance Ministry has been sent to the legal draftsman for their evaluation. The project needs Cabinet approval before signing the financial agreement by the two governments.
Despite concerns over projects financial viability, Ministry of Sports signed the technical agreement with the French contractor—Ellipse Project SAS in July last year and were awaiting the loan agreement to be signed to proceed with the project.
“It has been sent to the Legal Draftsman,” said Kamani Suriarachchi, Director (Planning) at the Sports Ministry. “Once we get the clearance from them, we need to get the Cabinet approval before signing.
The project includes indoor and outdoor training facilities at an altitude of 1868m (5708 feet) and will cost a staggering Euro 75.5 million or approximately Rs 12.9 billion. The money is expected to be sourced by the contractor.
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 last year approved the transfer of an Urban Development Authority (UDA) land (1 acre, 1 rood and 23.69 perches) to the Ministry of Sports for the construction of the hotel. (1 acre, 1 rood and 23.69 perches)
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.
According to a 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 per cent 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.