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Cabinet Decisions taken recently

 The following Cabinet decisions were taken on 20.10.2010 under the Chairmanship of President Mahinda Rajapakse :

1) Military Footwear Manufacturing Facility  
The Cabinet approval was given to establish a Joint Venture for manufacturing military footwear through Lanka Logistics and Technologies Limited.  This joint venture will be established between the government and a reputed private sector footwear manufacturer, and it will manufacture footwear required by the Armed forces, Police and other law enforcement agencies and will produce about one million pairs of footwear per year..  The Joint Venture will reduce foreign exchange outflow on footwear imports.  Cabinet approval was granted for the appointment of a Negotiating Committee to negotiate with the prospective private sector investors.

2) National Police Academy..   In view of the need to ensure the efficiency and effectiveness of maintenance of law and order, and enhance the capacity of the Police Department, Cabinet approval was granted to establish a permanent National Police Academy by an Act of Parliament.  This academy will be equipped with necessary expertise from various fields such as low, criminology, investigation, public relations, forensics, information technology and management. Cabinet approval was granted to instruct the Legal Draftsman to draft legislation for the purpose.

3) Reactivation of Atchuvely Industrial Estate – Jaffna.   This industrial estate covers an extent of 65 acres of land belonging to the Industrial Development Board, and was established in 1971 in the Jaffna district to provide infrastructure facilities for small and medium industries.  The 36 factories which were operating in the Estate were severely damaged by the terrorist conflict.  Approval was granted to reactivate this Industrial Estate with the assistance of IDB and BOI.  The Government of India has agreed to grant Rs. 174 Million and the government will provide Rs. 25 Million for reactivating this Industrial Estate. 

4) UNIDO Country Programme for Sri Lanka – Phase III  
This country programme proposes a total of 7 projects and this has been approved by the United Nations Industrial Development Organisation (UNIDO) Project Approval Committee.  It has estimated that a budget of U.S.$ 7.7 Million would be required for the following two main components of the country programme.

1. Component 1 – North and East – Support sustainable livelihood and productive activities through Private Sector development.  This would promote micro industries in the North and East Region, increase agricultural productivity and promote rural income generating activities, fisheries, industries in the North and East regions etc.

2. Component 2 – increase the competitiveness of industries and reduce poverty through the introduction of environment friendly technologies etc.

Cabinet approval was given to sign the relevant agreement by the Ministry of Finance and Planning.

5) Embilipitiya Paper Mill   Cabinet Approval was granted to call for expression of interest from domestic as well as foreign investors to revamp the Enbilitiya Paper Mill.  Presently government spends about Rs. 4 – 5 Billon for import of paper and paper products.  It is expected that a large part of this expenditure can be saved by revamping this paper mill on public private partnership basis.

6) Revamp Ceylon Ceramic Corporation Factors.   Cabinet Approval was also granted to call for expression of interest from domestic as well as foreign investors to revamp the Eragama, Uswewa, Mahinyangana, and Elayapattuwa factories of the Ceylon Ceramic Corporation.

7) Kantale Sugar Factory   Cabinet Approval was also granted to call for expression of interest from domestic as well as foreign investors to revamp the Kantale Sugar Industries Limited on public private partnership basis.

8) School Dental ClinicsAt present there are 473 Dental Clinics in schools of which 170 are in National Schools, and 330 in Provincial Schools.  Over 65,000 students get benefited from these Dental Clinics.  Cabinet Approval was granted to renovate these clinics at an estimated cost of Rs. 118 Million.  The project will be implemented in 2011 and 2012.

9) Construction of School and Sports Buildings   Approval was granted to award the contracts for consultancy and constructions of buildings at Homagama, Pitipana Maha Vidyalaya and a Sports Building at Lumbini Maha Vidyalaya at Colombo 05, to the Central Engineering Consultancy Bureau.

10) Biodiversity Garden   Cabinet Approval has already been granted for the project proposal for the establishment of a Biodiversity Garden of Tropical Fruits at the Fruit Crops Research and Development Centre at Horana.  This covers an extent of around 250 acres.  Cabinet Approval was granted for the allocation of funds amounting to a total of Rs 108 Million for the years 2011, 2012, and 2013.

11) Re-building of Rural Livelihoods and Community Organizations in Kilinochchi District.A sum of U.S.$ 5.0 Million is to be provided by the Korean International Cooperation Agency for this purpose.  This project will strengthen the community based organizations and Develop Infrastructure facilities for agriculture, irrigation and livestock sector and provide the required inputs for farmers.  The donor will provide financial resources and the government of Sri Lanka will provide staff, services and other facilities needed for the purposes.  Cabinet approval was granted for this proposal.

 12) Improvement and Rehabilitation of Priority RoadsLoan Facility of U.S.$ 500 Million from China Development Bank Co. Ltd., to finance improvement and rehabilitation of priority roads.  Of this amount U.S.$ 200 Million will be allocated in 2010 and the balance of U.S.$ 300 Million in 2011 to finance roads projects.  In order to accelerate the government road construction programme to provide necessary connectivity and linkages to the road network currently being constructed, it was decided to identify priority road sections covering the entire island connecting all electorates to finance under the credit facility extended by the China Development Bank.  The total length of the roads that will be rehabilitated/constructed will be 1,174 km. throughout the country, using the proceeds of this loan.

13) North Central Province electrification to 100%.
This project will provide 550 new Rural Electrification Schemes in the North Central province.  A total number of 110,000 domestic connections and 10,000 connections for small business / industries will be provided under this project.  Cabinet approval was granted to enter into a Credit Facility Agreement with Norda Bank AB of Sweden for U.S.$ 53.49 million being 85% of the ost of the project.  Proceeds of this loan will be utilized by the Ceylon Electricity Board for the above Electricity project.  The balance 15% will be borne by the Government.

14) Consultancy Services for Conflict Affected Region Emergency ProjectThe government has entered into an agreement with the Asian Development Bank to implement the above project to address the emergency needs of the Northern, Eastern and North Central Provinces.  The total project cost is estimated to be U.S.$ 168.24 million, which includes ADB Credit Facilities of U.S$ 150 million and government financing of U.S.$ 18.24 million.  The loan agreement is effective from September 2010 up to September 2013.  This includes the following:

1. Rehabilitation of National (65 km), Provincial (100 km), and Local (100 km) roads under the Northern Provincial and North Central Provincial Council
2. Restoring power and improving water supply schemes in these provinces
3. Improving the basic social services in these provinces, and
4. Reconstruction of Court Houses in the Northern Province.
Cabinet approval was granted to entrust the Consultancy Services of this project to the Central Engineering Consultancy Bureau.(niz).

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