The Government has called fresh bids to close the deal on the controversial sale of the Colombo Commercial Company (CCC) property facing the Beira Lake, with a decision on the highest bidder to be made by the Urban Development Authority (UDA) which comes under the Defence Ministry.
The Finance Ministry was also involved (along with the UDA) in the evaluation process but not anymore. These bids received from several local and foreign investors are now being evaluated, a high ranking government official said. No decision has been taken so far to sell the property to any of these big conglomerates, he said.
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| The CCC land with most of the buildings demolished . Pic by J. Weerasekera |
Earlier there were 31 applicants for the CCC property development but none was considered due to a decision made at the top powerful technocrat level to sell it to a blue chip conglomerate at a price of Rs. 8 billion without calling for other offers, informed sources said. The offer of Rs.8 billion by the conglomerate had been favoured by the Finance Ministry because the government is in a cash crunch, the sources said.
This deal-in-the-making, highlighted in Business Times on November 14, was not concluded following opposition from several local and foreign investors, as well as the failure of the ‘interested party’ to make its financial commitment on time. The state-run Bank of Ceylon (BOC), which was initially involved, is learnt to have decided to withdraw from its involvement in the project following the controversial offer, the sources said.
The CCC property has been earmarked to build city hotels, trade complexes and malls. On November 21, the Business Times reported that Shangri-la was objecting to the sale on the grounds that a land they were offered (army headquarters for a hotel) was unfairly, much higher in price than the property deal in dispute.
In a hard hitting speech during the budget debate where he referred to this proposed property deal, UNP Parliamentarian Dr. Harsha de Silva told parliament, “Who benefits from this economic policy? Who enjoys? Look at something right said in the Sunday Times of November 21. Shangri-la has been promised land in front of the Galle Face at $12 million per acre.
We wonder if the statue of former Premier S.W.R.D. Bandaranaike’s will be removed from its place for this. However, they are now reported to be saying the property of the Colombo Commercial Company located by the Beira Lake will be given at $7.7 million per acre to a person who went to the UN meeting in New York.
Therefore, people are asking who this friend is. Who is this crony?They are asking who this bosom friend is. It is said that 31 persons requested this. It is said that the land is going to be given to them for a song without any tender procedure.” |
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