State Minister of Vehicle Regulation, Bus Transport Services and Train Compartments and Motor Car Industry Dilum Amunugama said certain sections are attempting to misinterpret the public-private partnership of the East Container Terminal (ECT) of the Colombo Port as a move to sell the ECT.
The Hambantota Port deal of the former Yahapalana Government was a pure sale of the facility for 99 years and according to the agreement it can also be extended to another 99 years. However, the ECT is a partnership of 51 and 49 percent shares and it will continue for 35 years and the Sri Lanka Ports Authority (SLPA) will be the sole owner of it. Therefore, there would be no selling or leasing of a part of the ECT as claimed by certain sections, Amunugama told the Sunday Observer yesterday.
“When somebody goes to the Stock Market and buys 49 percent of shares, he is not the owner. He is just the second shareholder. Obviously, the person who has 51 percent is the owner. The same thing applies to the ECT as well,” he said.
Amunugama said those who maintain that the Government should not go for this partnership to develop the ECT, should understand the difference between a sale and a lease for 99 years. There is a huge difference between a 99-year lease and a partnership for 35 years. Obviously, the Government should take a final decision whether we should develop the ECT or not.
He said that it was clearly said by the relevant Minister that this will be a public-private partnership with 51 and 49 percent shares of the ECT. However, if the trade unions and the whole country say we should roll back this decision then that is also possible.
The former Yahapalana Government had taken a policy decision to sign a MoU for a public-private partnership to develop the ECT. Therefore, a decision has to be taken whether we should follow this stance or otherwise. If we want to develop the ECT, definitely we have to go for a partnership as the Government doesn’t have sufficient funds to develop it right now, he added.