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Kandy Struggles to Adjust to New Parking Rules
After
the KMC handed over earlier this month the management of the
new car park and street parking to a private company Property
Finance and Investments Kandy (Pvt.) Ltd numerous conflicts
have arisen between the new management and various sectional
interests in town. The latter include business owners, three-wheeler
operators as well as some truck owners and motorists who park
for extended periods of time. The basic cause for the conflict
is the sharp increase in street parking rates and the restriction
in street parking space. The KMC has decided to ban parking
from some areas.
Property Finance and Investments won the tender in a competitive
bid some months ago. The Chairman of the company is Mr. Thusitha
Wijesena who is developing the large shopping cum office complex
called Kandy City Centre that is located across the road from
the new car park.
The KMC first tried to run the car park on its own. The Council
began to incur maintenance cost from May this year. On July
14th it started charging a parking fee. But a scrutiny of
accounts indicates that it hopelessly failed to raise sufficient
income from the venture. KMC spent a total of Rs 4.1m on wages,
electricity, security and other maintenance for the car park
over a period of three and a half months to the end of October.
The gross income for the period was only Rs 2.0m incurring
a loss of Rs 2.1m. This calculation does not include deprecation
that also must be counted for a proper cost estimate. KMC
also spent Rs 1.1m on the opening ceremony and other festivities
in connection with the car park and Rs 182,000 in legal expenses
to fight a court case against shopkeepers who refused to move
from Torrington Square. Most important the KMC must pay Rs
2.9m per quarter to service its share of the Asian Development
Bank loan that was taken to build the car park. Had the KMC
continued to run the car park in the manner it did in the
first three and a half months, it would have lost about Rs
600,000 each month (excluding depreciation) and would have
to come up with an additional Rs 950,000 to pay back the loan.
KMC made an additional Rs 200,000 in profit each month from
street parking fees but that was insufficient to cover the
loss from the car park. The bottom line is the Kandy ratepayers
would have had to bear the loss in additional taxes or curtailed
services. Mayor Kesera Senanayake told The Kandy News that
the KMC was compelled to privatize the car park management
due to the above circumstances.
The rates for the car park as well as street parking have
been agreed upon between the KMC and the private contractor.
A graduated rate is levied in the car park starting with a
fee of Rs 11.50 for each of the first two hours. For street
parking Rs 23 is charged for “light vehicles”
(cars and vans) for the first hour and Rs 57 for each additional
hour. In Colombo Street only “heavy vehicles”
have to pay Rs 34 for each hour. Elsewhere they have to pay
Rs 57 for the first hour and Rs 86 for each additional hour.
Three wheelers and motorcycles have to pay a flat rate of
Rs 11.50 per hour. These charges are levied from 5.00 a.m.
to 8.00 p.m.
The Sinhala Welenda Mandalaya (Sinhala Trade Forum) together
with several other similar trade chambers has taken the lead
in objecting to the new parking arrangements. They object
to what they call the “steep” rates, and also
to the fact that for any fraction of an hour the hourly rate
has to be paid.
The Three Wheeler operators object to what they describe as
the “unbearable” burden that the new rates have
imposed on them.
Several heated arguments and even clashes have been reported
between management company employees who are deployed to collect
the new street parking fees and motorists and three wheeler
operators. The latter, it is reported, are not paying the
specified fee and hope to negotiate with the management company
for a reduced rate.
Mr. Wijesena says that he has taken a financial risk in taking
on the management of the car park and street parking. He has
to pay Rs 2.8m to the KMC every month. This gives the Council
a monthly margin of about Rs 1.8m after servicing the loan.
Mr. Wijesena claims that for the foreseeable future he would
lose money on the car park tender. He claims that he has already
spent or will spend in the near future a total sum of Rs 65m
in capital expenditure on “improvements to road and
street lighting” (Rs30m), equipment (Rs15m) Bank Guarantee
(Rs 9m) and other such items. He has budgeted Rs 7m per month
for recurrent expenditure for his operation. It remains to
be seen how well he does to cover his cost and make a profit.
Mr. Wijesena in an exclusive interview with The Kandy News
told this news paper that he took on the management mainly
because he can combine the car park management with that of
the Kandy City Centre. He says that according to the original
plan of the KMC no parking should be permitted on 13 of the
Kandy streets. But that has been relaxed at the request of
shopkeepers. Three wheelers will be permitted parking in three
major stands and 162 minor stands. Vans and cars for hire
too would have their own parking areas for a reasonable fee.
Mr. Wijesena says that it is not practical to have shuttle
bus service to and from the car park. Using some of the existing
three wheeler operators he plans to shortly introduce a three
wheeler shuttle service from the car park to key points in
the city for a flat rate Rs 30 each way. Soon he will also
extend the present restricted hours of the car park to keep
it open 24 hours a day. He also hopes to initiate a scheme
that will allow shopkeepers to pay for parking for shoppers
who make purchases totaling a pre-specified minimum sum. Mr.
Wijesena says that it will take at least three months to get
an accurate picture of the new arrangements. The Kandy News
will keep a track of new developments for the benefit of our
readers.
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Construction in Kandy Town Bird Park
Foiled
The
Kandy Police and concerned citizens foiled an attempt of a
businessman to construct a milk bar in the green space located
between the Kandy Central Market and the Clock Tower Bus Station.
Popularly known as Kurulu Uyana which is one of the very few
green spaces that still remains in the city. Over the last
three decades shops have gobbled up, among other spaces, the
George E. de Silva Park and the railway flower garden between
the Matale rail track and the S W R D Bandaranaike Mawatha
(Station Road) from the old KMC Power Station to the General
Post Office.
The businessman who attempted to erect a shop in Kurulu Uyana
claims that the KMC demolished his original shop to make way
for the new KMC car park. He had made an application in May
2005 to the Council requesting space from the Kurulu Uyana
to establish a new shop. The Council at its June meeting took
up the application but deferred making a decision. In the
interim the UDA Director Janaki Hettiarachchi informed the
Mayor in writing with a copy to the businessman that the UDA
is granting permission for the proposed structure. Based on
the UDA decision the Deputy Mayor had written to the businessman
in September granting permission to build the new shop.
However, the KMC at its October meeting rejected the application
of the businessman on the grounds that it was not in accordance
with the laws and policy of the Council. KMC sources also
point out that the Council removed the shops in Torrington
Square under a court order. It has no legal obligation to
provide alternative accommodation, they claim. In any event
a valuable green space such as Kurulu Uyana is not the appropriate
place for shops, they assert.
Full text from home page
Mayor Vows to Fight
Corruption in KMC
Mayor
Kesera Senanayake vowed to fight corruption in the Kandy Municipal
Council with all the power and resources at his disposal.
He was responding to a complaint from the JVP KMC member Anura
Gonawela who alleged that the husband-wife duo that was in
charge of the Council computer unit for ten years has resigned
and disappeared without a trace as people began to question
their probity. It is alleged that they had sold to the Wattegama
Urban Council the software package that they designed for
the KMC to collect rates and water bills. They are also suspected
of having erased from the computer records a water bill for
Rs 21,000 that a Kandy business owed the Council. Mr. Gonawela
says that various corrupt practices of the couple are now
coming to light in an investigation that the Council is conducting
of their work in the KMC.
Mr. Gonawela said that there was a 1,300 litre diesel fuel
fraud that has come to light. That too involved the computerized
data system. Computers are supposed to help maintain more
accurate information and reduce corruption. The opposite appears
to be the case, he said.
Mayor Kesera Senanayake thanked MMC Gonawela for being vigilant.
The Mayor noted that on a previous occasion Mr. Gonawela revealed
how cheaper Indian imports had been substituted for more expensive
British imports to defraud the Council. Mr. Senanayake said
that his administration was determined to fight corruption.
He said that recently he had interdicted an official who had
tried to steal cement.

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