Private entities will only develop infrastructure under PPP agreement, says Sports Minister

A Cabinet proposal to allow Public-Private Partnership for the maintenance of grounds and sports complexes in the country has given rise to contention, after its wording suggested that these grounds and complexes would be handed over for upkeep to private sector companies.

Sports Minister Namal Rajapaksa however says that private entities will be not entrusted with maintaining sports complexes but only with undertaking infrastructure development afterreceiving Cabinet approval forthe project.

A Sports Ministry proposal titled “Streamlining of management, maintenance and development of sports complexes and grounds built at provincial and district level” was part of the Cabinet proposals made on August 9 and was subsequently approved.

“This proposal is to develop the infrastructure around the grounds. This will help fund the maintenance of grounds, which is usually government funded, but we can save up to Rs. 1 billion from the Sports Ministry budget for a two-year period, through implementing this project,”Sports Minister Rajapaksa told Daily Mirror.

The proposal states that existing measures in place for maintaining grounds and stadiums have not produced expected outcomes, a situation that could be reversed by engaging the private sector.

“Provincial sports complexes, district sports complexes and playgrounds equipped with all amenities have been constructed across the country and some of the constructions have already commenced. A majority of these playgrounds are being maintained by the relevant local government body and some of the playgrounds are being maintained by the Department of Sports Development. However, expected outcomes have not been achieved as these complexes and playgrounds have not been maintained in a proper manner. Therefore, the need to create an appropriate mechanism to maintain them has been identified,” the proposal number 15 of the Cabinet paper, which related to the PPP agreements, read.

“It is also expected to provide a productive service to the relevant institutions and sportspersons in the area, by providing facilities at an appropriate concessionary fee for national level competitionsorganised by the government and the Department of Sports Development,” the proposal stated.

“Accordingly,I) grounds and stadiumsunder the purview of the sports ministry and the Department of Sports Development,grounds and stadiums constructed with funds provided by the Ministry and the Department, but under the purview of local government institutions and public and semi-public institutions and to authorise the management of the Sugathadasa National Sports Complex to enter into a public and private partnership (PPP) under self-funded financial administration and management; II) to enter into an MOU among private investors and relevant public and semi-public institutions to invest in it; III) to provide facilities at an appropriate concessionary fee for national level sports events or competition organised by the schools and Department of Sports Development,” the proposal requested.

Rajapaksa said that these proposals will not only help grounds become self-sufficient and see an improvement in facilities, but also ensure that there is longevity regardless of which government come into power.

“What we are looking at is engaging private entities to develop the infrastructure surrounding the grounds and rent out sections of the property, and then use that money to maintain the grounds,” Rajapaksa said.

“As the public and private parties involved will sign an agreement for a period of time, a change in government or policies won’t affect these ventures,” Rajapaksa said adding, “This will ensure that sportsmen and women continue to benefit in the long run.”

The Minister clarified that Sugathadasa Stadium had since been removed from the proposal as it could not engage in a PPP agreement, but that their management will also be restructured separately in the near future.

“We’re spending Rs. 16 million a month on maintaining Sugathadasa, so we are looking at a restructuring of the management of the stadium into a similar manner, and we will appoint a committee to look into it and make recommendations,” the Minister said.

However questions have arisen as to how effective this would be in actually developing grass-root level sports.

Former Chairman of the Sugathadasa Authority, from 2013 to 2015, Attorney-at-Law Panduka Keethinanda speaking to Daily Mirror contended that it was possible for Sugathadasa to be included in a PPP agreement, although doing so could seriously hinder the development of sports.

“What this is will be is another case of disposing public property for money, and there is no guarantee that following this model will benefit sports. I don’t believe any private entity will develop these properties and not expect a return that will be profitable. Ultimately if they start putting up buildings around the grounds, what we will see is that all the sections of the property will be given over for businessand there will be very little made available towards the development of sports,” Keerthinanda said, adding that this will not help the development of sports.

Keerthinanda also stated that under the Sugathadasa Act, the Sugathadasa Authority can engage in a PPP agreement, and also can be put in charge of maintaining these grounds and stadiums, like how it overlooks the Nuwara Eliya Race Course grounds.

“Under section 5, the Sugathadasa Authority can, acquire and hold, property, both movable and immovable, and to pledge or sell, mortgage, give on lease or hire, exchange or otherwise dispose of, the same; accept grants, gifts or donations of immovable or movable property from any government, persons or bodies of persons, in or outside Sri Lanka and to enter into, and perform all such contracts and agreements as may be necessary for the purposes of discharging its functions,” he said.

Keethinanda was also an active member of the Nation Sports Council, and a Legal Advisor for Sports Ministers between 2010-15 and 2018-2020.

Minister Rajapaksa however states that PPP agreements would limit private sector partnership to infrastructure development and they would not be involved with the maintenance of the grounds. 

“This is not for ground management but to develop the infrastructure around the grounds,” he said. “The private entities will have no say in the maintenance or of how the grounds is used.”

The grounds will instead be overlooked by a committee that among others, will include a Sports Ministry representative, members of the local government, clubs in the area and community police.

An administration secretary will also be hired, though a job advertisement, Rajapaksa added, who will be tasked with maintaining transparency in the operation of the grounds.

As part of the project, certain grounds will be given to sports federations to manage, similar to how the Dadella Sports Complex was put under the stewardship of the Sri Lanka Volleyball Federation.

“The Volleyball Federation used to have to go and pay and hire stadiums and pay to conduct their events, but ever since they were given the Dadella Sports Complex they have saved Rs. 6 million,” Rajapaksa added.

“We have taken similar measures to give the Table Tennis association a facility in Bandaragama, a facility for gymnastics in Matara, and will look to give two grounds to Football Sri Lanka.”

Additionally, private sector partners will be asked to sponsor High Performance Centres at the respective grounds, to further contribute towards the development of sports, Rajapaksa added.