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. A Memorandum of Understanding and an Agreement to formalize this commitment were signed today, 21st July 2011, between India and Sri Lanka. The documents were signed on behalf of the Government of India by High Commissioner Ashok K. Kantha and on behalf of the Government of Sri Lanka by Mrs. Sujatha Cooray, Secretary of the Ministry of Ports and Highways. The ceremony was also attended by Hon. Deputy Minister of Ports and Highways, Mr. Rohitha Abeygunawardena and the Chairman of the Sri Lanka Ports Authority, Dr. Priyath B. Wickrama.

The Kankesanthurai Harbour project will be aided by a mix of grant funding and concessional credit from the Government of India. While the total expenditure on the project will be determined by the Detailed Project Report (DPR) that will be prepared, the Government of India has already committed approximately $20 million (SLR 2.2 billion) for three initial elements, consisting of the preliminary hydrographic survey, geotechnical investigations and DPR preparation and wreck removal and salvage. In addition to this, the Government of India will provide additional grant funding for the dredging of the harbour and concessional credit for the rehabilitation of the breakwater and construction of a new pier and attendant port facilities.

In his remarks after the signing ceremony, High Commissioner Kantha stated that 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 domestic and regional linkages 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. Rohitha Abeygunawardena expressed the appreciation of the Government of Sri Lanka for the assistance being provided for this important project by the Government of India.

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.