Following the signature on 21st July 2011 of a Memorandum of Understanding and an Agreement between India and Sri Lanka for the rehabilitation of the Kankesanthurai Harbour, work on the wreck-removal and salvage portion of the project was inaugurated today by Minister of Economic Development Basil Rajapaksa and High Commissioner of India Ashok K. Kantha at a ceremony in Kankesanthurai. Also present at the ceremony were Hon. Minister of Traditional Industries & Small Enterprise Development, Mr. Douglas Devananda, Hon. Governor of the Northern Province, Maj Gen (Rtd) G.A Chandrasiri, Hon. Deputy Minister of Ports and Highways, Mr. Rohitha Abeygunawardena, Secretary of Ministry of Ports and Highways, Mrs. Sujatha Cooray, the Chairman of the Sri Lanka Ports Authority, Dr. Priyath B. Wickrama, senior civil and military officials of Jaffna, as well as the political leadership of the area.

The wreck removal work in Kankesanthurai is being done as a fully grant-funded project for which a sum of SLR 2.18 billion ($19 million) is being made available by India. An initial hydrographic survey, completed in June-July 2010, was also funded by India. Following the wreck removal works, India will also provide grant funding for the preparation of a Detailed Project Report (DPR), geo-technical investigations and dredging of the harbour and approach channel. In addition to this, the Government of India will also make available concessional credit for the rehabilitation of the breakwater and construction of a new pier and attendant port facilities in the Harbour.

During the visit of His Excellency President Mahinda Rajapaksa to India in June 2010, it had been agreed in the Joint Declaration issued on the occasion that India would extend assistance for the rehabilitation of the Kankesanthurai Harbour among other infrastructure projects in the Northern Province. In his remarks after the signing ceremony, High Commissioner Kantha stated that the signature of agreements last week to formalize this understanding and the commencement of work earlier today were a reflection of the commitment of the Government of India to assist the Government and people of Sri Lanka, especially in the Northern Province, as they seek to recover from years of conflict and restore peace, stability and development in the country. The High Commissioner also said that the restoration of physical infrastructure at the Harbour would contribute towards the reconstruction efforts of the Government of Sri Lanka, promote normalcy in northern Sri Lanka by restoring traditional commercial linkages, both domestic and regional and give a fillip to economic activity by encouraging trade. The allied activities at the Harbour would also generate employment in the area. The High Commissioner appreciated the strong support and cooperation extended by the Government of Sri Lanka at every stage of project formulation and preparation and noted the key role played by the Ministry of Defence, the Ministry of Ports and Highways, the Ministry of External Affairs and the Sri Lanka Ports Authority.

In his remarks, Hon. Basil Rajapaksa expressed the appreciation of the Government of Sri Lanka for the assistance being provided for this important project by the Government of India. He said that the Government and people of India had always supported the development efforts of the Government of Sri Lanka. While noting that India was involved with a number of other development activities in the Northern Province as well as in other parts of Sri Lanka, he said that with Indian assistance, Kankesanthurai would become a bigger and better port and be able to function as the hub of economic development in the Northern Province.

A fact sheet on the Kankesanthurai Harbour rehabilitation project is :

FACT SHEET

The Kankesanthurai Harbour rehabilitation project is a complex and wide-ranging project, which includes multiple stages. These are:

• Preliminary Hydrographic Survey
• Wreck removal and disposal
• Dredging
• Geotechnical investigations and preparation of Detailed Project Report
• Rehabilitation of breakwater/pier and construction of new pier with attendant port facilities
• Final hydrographic survey and preparation of Harbour Chart

Details of each stage

• Preliminary Hydrographic Survey : The survey has already been completed by an Indian agency in June-July 2010 as part of the preparation for this project.

• Wreck removal and disposal : The Government of India, through the Shipping Corporation of India, has awarded a contract for removal and disposal of six wrecks at KKS harbour to M/s Resolve Salvage and Fire (Asia) Pvt Ltd, Singapore at a total cost of $19 million (SLRS 2.18 billion). The company has completed its mobilisation of recourses involved in the contract. There are six wrecks to be removed, of which 4 are inside and 2 are outside the harbour. Wreck removal is expected to be completed by mid-November 2011. The work is being funded by a grant from the Government of India.

• Dredging Work : The dredging of the harbour will be undertaken by the Dredging Corporation of India (DCI) and is expected to commence in late 2011. The work will be fully funded by a grant from the Government of India.

• Geo-technical & Geo-physical investigations and preparation of DPR : The contract for Geo-technical and Geo-physical studies and preparation of Detailed Project Report (DPR) has been awarded to RITES Ltd of India. These studies are in progress. An initial draft of the DPR has also been prepared by RITES and will be presented to Sri Lankan authorities shortly. Once the DPR is approved, RITES would carry out the tendering procedure for the work included in the DPR. The scope of work would include rehabilitation of the existing breakwater, construction of a new pier and related port facilities. The preparation of the DPR is being funded through a grant from the Government of India.

• Rehabilitation of breakwater/pier and construction of new pier with attendant port facilities : These works will be undertaken in accordance with the approved DPR, which is being prepared by RITES who will also float tenders for award of works related to this stage. The Government of India will provide a Line of Credit to the Government of Sri Lanka for undertaking works relating to rehabilitation of the breakwater, additional pier/s for commercial cargo handling and the installation of port infrastructure facilities.

• Hydrographic Survey and preparation of Harbour Chart : Detailed hydrographic survey and preparation of Harbour Chart will be taken up as the final stage of work.