Controversy surrounds New CMC development project



The MOU has also not received approval by the Standing Committee on Finance and the General Council

Kollupitya Market is to be converted into a mixed development project which could also include residential apartments

The Municipal Treasurer in his report has said that the advice of an expert in finance and economics should be sought by the CMC

 

The Kollupitiya Market, which was one of the several development projects implemented in the Colombo City along with the Non –Aligned Summit in 1976, is at present the centre of controversy following a move to convert it into a mixed development project which includes a 40 storeyed building.


The Daily Mirror learns that the present three storeyed building housing 90 shops is to be demolished. Those who operate shops in the building will see their businesses being relocated.

 

Approval for the project was to be sought from the General Council on March 15 2021. Therefore I kindly request that action be taken immediately to have the MOU set aside and have the proposed transfer cancelled

SLPP member CMC’s  Shermila Gonawala

 


Colombo Municipal Council (CMC) which owns the building has already signed an MOU to proceed with the project together with an investor.


Certain members of the CMC have alleged that the council has signed an MOU with the UDA to hand over the Kollupitiya Market violating the municipal ordinance.


A gazette already issued states that by virtue of the powers vested in him under Section 15(1) of the UDA Law, No. 41 of 1978, Premier Mahinda Rajapaksa, who is also the Minister of Urban Development and Housing, has taken over the land where the Kollupitiya Supermarket is located. 


SLPP member CMC’s Shermila Gonawala told the Daily Mirror that the MOU had been signed sans the approval of the General Council. She added that the CMC has also not obtained the approval of the standing committee regarding new markets.


Meanwhile Gonawala in a letter addressed to Minister of Public Services, Provincial Councils and Local Government Janaka Bandara Tennekoon said the CMC has signed the MOU disregarding the requirements of the Municipal Ordinance. She requested the minister to have the MOU terminated.


“The most important requirement is that prior to signing the MOU that had been prepared by the UDA it should have been discussed at the Standing Committee for Markets. This has not been the case. The MOU has also not received approval by the Standing Committee on Finance and the General Council. This is a violation of the Municipal Ordinance. However the approval of the Finance Committee was given only on February 15 after documents were signed. Approval for it was to be sought from the General Council on March 15 2021. Therefore I kindly request that action be taken immediately to have the MOU set aside and have the proposed transfer cancelled,” Gonawala said in a letter written to minister Tennekoon.


“I also asked Prime Minister Mahinda Rajapaksa about the project. He was not aware of such a project,” she added.  

There is also a move to provide monetary rewards to the members of the Municipal Council in exchange for backing the project. There is also a move to amend the MOU, under which it is proposed to reverse the earlier clause for which both parties have agreed upon

JVP Member of the Council Hemantha Kumara


JVP Member of the Council Hemantha Kumara said that the Kollupitya Market is to be converted into a mixed development project which could also include residential apartments. “Our argument is that it is hard to sell apartments as there are many such apartments within the city. Even some apartments at Trillium Residencies are empty at present. Therefore how could such a project be lucrative,” he questioned.


“There is also a move to provide monetary rewards to the members of the Municipal Council in exchange for backing the project. There is also a move to amend the MOU, under which it is proposed to reverse the earlier clause for which both parties have agreed upon. Under this earlier clause the CMC was to receive a proportion of the profit equal to 30 percent of the flow space,” he said.


Both Kumara and Gonawala said that this clause is to be amended at the next Council sessions on August 24 2021.


“No investor has been found according to my knowledge and we question the success of the project,” they claimed.


The Municipal Treasurer in his report has said that the advice of an expert in finance and economics should be sought by the CMC. “There is no meaning in a profit sharing formula without numerical values. The new proposals which have been made by the UDA Secretary will not provide any benefit to CMC and therefore I cannot recommend it,” he has affirmed in this report.


He stressed that a proper study has to be conducted on the project to determine the feasibility. “Details on the investment is not available yet. Therefore there is no way of making a conclusion on the profit share.  The profits will be less what the project becomes larger in terms of investment,” he has stressed in his report,
The Daily Mirror also learns that a meeting was held at New Town Hall to update all members of the Municipal Council on the project. However some members are of the opinion that they were not properly informed regarding the project.

 

There is no way of CMC losing any benefit as we will entertain its requirements. An investor will be decided upon only after considering the requirement of the CMC

UDA Director General N. P. K. Ranaweera

 

Meanwhile UDA Director General N. P. K. Ranaweera confirmed with the Daily Mirror that an MOU had been signed with the CMC to proceed with the project. “There is no way of CMC losing any benefit as we will entertain its requirements. An investor will be decided upon only after considering the requirement of the CMC,” he said.



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