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January - February 2009
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Provincial Council Elections
UPFA Confident - UNP Relies Heavily on SB

UPFA is confident that it will be able to retain power in the Central Provincial Council at the fifth provincial council election to be held next Saturday. The UNP is relying heavily on the charismatic leadership of S B Dissanayaka to reverse the string of election defeats that it has suffered in the past three years.

One would expect the Sri Lankan voters to be tired of elections. But there is always something “special” that emerges that ultimately makes it more interesting than originally anticipated. The upcoming Central Provincial Council election is one such. The government that is riding on a wave of popularity owing to its military successes against the LTTE is staking its reputation with president Rajapakse himself personally visiting the province as campaigner-in-chief on behalf of his party.

The UNP, that has been demoralized in the last two years by consecutive election defeats, bitter internal bickering, and weak national leadership has found a ray hope in the CPC chief ministerial candidate S B Dissanayaka. In effect, this election is partly a test of strength between two former comrades-in arms- from the glory days of Chadrika Kumaratunga's PA of the 1990s.

The outgoing Chief Minster Mr. Sarath Ekanayaka and his slate are convinced that the wind is blowing heavily in their favour. Government ministers who are campaigning have even hinted that it will be a virtual walk over for their party because the opposition is so weak. It is not only the popularity of the president and the success of the war that make them so confident. The fact that the powerful Plantation Tamil party Ceylon Workers Congress (CWC) and the Upcountry People's Front (UPF) are backing the governing United People's Freedom Alliance (UPFA) is a huge advantage, two breakaway groups from the two parties backing the UNP notwithstanding. In the Nuwara Eliya District that elects 16 (28%) of the 58 CPC members, 57% of the voters are Tamil. In Matale and Kandy districts they account for about 11% to 12%. About 25% of the entire provincial population is Tamil. Thus having the two main Tamil parties is a huge advantage for the UPFA.

Sarath Ekanayaka and S B Dissanayaka are in the top tier among candidates by virtue of their leadership roles. For Ekanayaka who has a reputation as a very decent person who works quietly but steadily this is an opportunity to further consolidate his position as the top provincial statesman. More>>

Kandy Area Water Problem Gets Lasting Solution

With two major water schemes, one that has been partly completed, the second due to be completed later this year, and the construction of the third just getting started, Kandy area residents are assured of a reliable water supply for many years to come.

The Greater Kandy Water Supply Project Phase 1 Stage I was completed in 2006 at a cost of Rs 5,400m funded with Japanese aid. It supplies water to Pathadumbara, Kandy Four Gravets, Akurana, Pujapitiya and Harispattuwa Pradesheeya Sabha. A total of almost 200,000 consumers in about 30,000 households and businesses have been benefitted. About 4,000 water connections (28,000 consumers) are new connections. About 25,000 existing connections (165,000 consumers) receive an improved supply.

Distribution Chamber, Greater Kandy Water Supply Project	Weir across Mahaweli, The Towns South of Kandy project

The second project, scheduled for completion later this year, is the “Towns South of Kandy Water Supply Project.” The Director of the project Engineer Wasantha Ilangasinghe says that the project will supply water to Udunuwara and Yatinuwara covering five Divisional Secretary Divisions, namely Udunuwara, Yatinuwara, part of Gangawata Korale, and parts of Ganga Ihala and Udapalatha. It is estimated that there are about 20,000 consumers in this area on a waiting list for water connections. The new scheme will have the capacity to serve a population of 350,000 projected to the year 2025.

The Towns South of Kandy project started in June 2006 with funding from Government of Denmark and Government of Sri Lanka. The total project cost is Rs. 7250m with a foreign component Rs 4,975m (69%) and a local component Rs. 2275m.

Mrs. Ilangasinghe says the project has four major intakes from the Mahaweli and its tributaries, three major treatment plants at Meewatura, Ulapane and Atabage, one unit for disinfection of water at Elpitiya and 11 new reservoirs. When completed it would have laid 55km water transmission pipes and about 300km distribution pipes

Stage 1 Phase II of the Greater Kandy Water Supply Project is scheduled to be completed over the period 2007-12.The Project Director Engineer Sarath Gamini told the Kandy News that it was more or less on schedule and the contracts for construction will be signed shortly. The project when completed will benefit about 200,000 consumers, in KMC, Ampitiya, Rajapihilla, Kulugammana, Nugawela, Heerassagala, Meekanuwa, Mullepihilla, Elhena, Gohagoda, Kondadeniya, and Thelambugahawatta. About 35% of them will be in the municipal area and the balance 65% outside. The project will provide about 4,000 new water connections and augment the supply of about 25,000 existing connections.

Stage II was originally estimated to cost Rs 5,200m of which Rs 3,100 (60%) was to come from the Japanese government as aid and the balance Rs 2,100 (40%) was to be provided by the Sri Lanka government. However, cost escalation attributable mainly to inflation has resulted in a budget shortfall. The officials concerned are exploring avenues to bridge the shortfall.

Supreme Court Stops KMC Car Park Privatization

The Supreme Court recently issued an injunction at the request of the Kandy Municipal Council to stop the KMC car park being handed over to a private company Property Finance and Investment Kandy (Pvt) Ltd via the Board of Investment (BOI) of Sri Lanka. The company that is run by property developer Thusitha Wijesena also owns the humungous Kandy City Centre that dominates Kandy's premier business area in Dalada Veediya.

As we reported in the previous edition of The Kandy News President Mahinda Rajapakse was to formally open the Kandy City Centre on January 29th and also lay the foundation stone to build a three-cinema movie complex, an open air theatre and a cultural complex on top of the existing four storey KMC car park. To make this happen the government took the car park away from the KMC without consultation with the latter and handed it over to BOI. The Municipal Commissioner at a press conference revealed that the BOI did not respond to two official inquiries from the KMC on the takeover. The Council when to court seek redress.

The BOI signed an agreement with Mr. Wijesena's company to lease the car park for fifty years at the end of which period the ownership would transfer to the company. The company in return agreed to build the cinema complex and other amenities as a BOI project that will earn the company a considerable tax break.

The Supreme Court decision halted if not ended Mr. Wijesena's plans to integrate his Kandy City Centre with the KMC car park built with public funds.

The car park was built with a loan from the Asian Development Bank that the KMC is repaying. The KMC gave the car park to Mr. Wijesena's company on a lease three years ago. The Municipal Council expected to earn a monthly rent from Mr. Wijesena's company to repay the loan and retain a surplus to meet other municipal expenses. However, after a few months KMC and Mr. Wijesena's company got in to a dispute over the terms and condtions of the lease and the latter went to courts. That dispute is yet to be settled and has gone into arbitration. The company stopped paying the monthly lease to the KMC forcing the council to service the loan with general tax revenue. The car park instead of yielding an income for the KMC has become a drain on its limited resources.
Mr. Wijesena's company owes as rent an estimated Rs 180 million to the KMC. The Supreme Court also ordered the two parties to settle the dispute over rental payment by March 02, 2009.