CABINET
MEMORANDUM
APPROVAL
FOR THE DEVELOPEMNT OF ZONE 6
OF MAHAWELI SYSTEM B MADURU OYA RIGHT BANK
UNDER NAGENAHIRA NAVODAYA PROGRAMME
1. INTRODUCTION
Several
efforts made since the commencement of the Mahaweli Development Programme
to implement the development plans of Maduru Oya Right Bank had fallen
in abeyance due to the insecurity conditions that had been prevailing
in the area.
As a
consequence of the clearing of the area by the Sri Lankan security
forces by flushing out terrorists in July 2007, Maduru Oya Right Bank
became conducive to implement development plans. Accordingly, the
Government of Sri Lanka (GOSL) directed Mahaweli Authority of Sri
Lanka (MASL) to commence the implementation of the development works,
in Zone 6, of Mahaweli System B, immediately.
2. BACKGROUND
Since
the commencement of the project formulation of the Mahaweli Ganga
Development Programme various agencies under taken survey of the irrigation
potential of the Mahaweli System B Maduruoya Right Bank Project
and found that the project is economically and technically feasible
and several funding agencies pledged their support for the development
efforts. But, the terrorist activities prevailed in the area prevented
the commencement of development activities.
3. PROPOSED
DEVELOPEMNT UNDER NEGENAHIRA NAVODAYA PROGRAMME
Immediately
after the liberation of the Eastern Province by the security forces
from the jaws of the LTTE Tiger terrorists, the GOSL decided to embark
on a great humanitarian mission. Development of the East of Sri Lanka
in every possible sphere is the main objective. Resettlement and development
are vital components of this mission. The GOSL, set up a special programme
named "Negenahira Navodaya' to achieve this task under the Ministry
of Nation Building. All the government organizations concerned were
assigned to carryout specific functions. In this respect MASL was
assigned to implement the development of the Zone 6 of Mahaweli System
B, Maduru Oya Right Bank, immediately, in order to commence cultivation
in the new lands under medium size commercial farms through funding
by the private sector investors. The investors are to be provided
with a 20 ha. Farm-Plot with an access to water for cultivation and
a motor able access to the farm plot. Until, the completion of the
construction and commissioning of the necessary downstream irrigation
infrastructure, prospective farmers can utilize ground water as well
as stream flow as water for cultivation and livestock development.
At present there is a demand from the investors for land for commercial
production of crops, livestock etc. to cater the needs of the local
and export markets. The Proposed project would attract the private
sector to develop the area as a production base. The participation
of the Private Sector in the development process will reduce the financial
burden on the GOSL.
Land
Capacity of the project area is as follows.
Gross
Area 10,800 ha
Irrigable Area suitable for Paddy 4,497 ha & Upland 501 ha
Horticulture 1,807 ha
4. OBJECTIVES
Present
development scenario for immediate development needs of Zone 6 of
Mahaweli System B-RB will comprise following specific objectives.
Economic development through commercial farming with the participation
of private sector investors
Utilization of available arable land and water resources
5. PROJECT ACTIVITIES
Following
are the identified project activities
Preparation of blocking out plans of 20 ha. lots (250 Nos.) for commercial
farming
Erection of 2 Nos. Bailey bridges
Construction of access roads of 60 km
Staking out of commercial farm lots
Selection of Investors for commercial farming
Alienation of commercial farms
Monitoring and follow up
8. PROPOSED DEVELOPMENT CRITERIA
According
to the development plans formulated by the MASL, 14,000 ha. of new
lands in Zones 6,7 & 8 of Mahaweli System B-RB can be provided
with water for irrigation through the Irrigation Infrastructure that
were already constructed and planned to be constructed. Thus the development
of Zone 6 will be implemented as an exigency while keeping the parameters
of the irrigation canals and structures as planned to provide irrigation
facilities to 14,000 ha. of new lands. The irrigable area of Zone
6 will be alienated among the private sector investors for development
by commercial cultivation of crops, livestock and forestry, etc. Land
will be allocated on a long-term lease basis to private sector for
development and establishment of commercial farms. The size of a farm
will be around 20 ha. Each farm will be provided with a motorable
access and access to water for irrigation. Available water from Maduru
Oya drainage could be utilized by the investors through lift irrigation
and agro wells, constructed in their respective farmland. This system
would be replaced by the proposed irrigation network, which will be
constructed at a later stage by the Mahaweli Authority of Sri Lanka
(MASL). More-or-less the construction of preliminary facilities will
be done by the Sri Lanka Army with the assistance of the Survey Department
and the Roads Development Authority coordinated through MASL. Land
will be allocated in the present condition and the investor is expected
to do the land clearing, on-farm development and the internal irrigation
network. The total extent of land available for large farms is 4,700
ha. Number of Large Farms of 20 ha available is 250.
8.1 Procedure
of Allocation of Land
Lands
for commercial agricultural, livestock, and forestry projects will
be allocated by calling Project Proposals from the potential investors
after giving wide publicity through mass media. the project proposals
will be evaluated by a committee representing relevant Ministries,
and institutions such as BOI, EDB, MASL and will be forwarded for
approval by the relevant authorities.
8.2 Lease
Terms and Conditions
In addition
to the general terms and conditions applicable to the lease document
following Lease terms and Conditions will also be included.
1) Lands
will be leased under the terms and conditions of the Crown Lands Ordinance.
Lands will be leased for a minimum period of 30 years, actual period
to be determined depending on the type of the project.
2) Lease
rental will be based on the Government Chief Valuer's valuation. Four
percent (4%) of the current market value of the land will be charged
as the Annual Lease Rent
Annual
Lease Rental will be revised every 5 years, which will not be less
than 150% of the previous rental.
3) Investor
should attend to all development activities of the land including
land clearing, on farm development, internal irrigation infrastructure
etc. at his own cost.
4) Investor
should develop the land according to project proposals and time frame
given there in.
5) Investor should bear the cost of maintenance of irrigation infrastructure,
land surveys and valuation.
9. POTENTIAL
BENEFITS
The project
would enable the development of currently unexploited and underutilized
land resources in Zone 06 of Maduru Oya Right Bank in Mahaweli System
B. Around 250 Nos. investors can be engaged on this development activity
immediately, with a comparatively less capital investment by the state.
The project
at full development would generate annually an estimated quantity
of 25,000 tons. of grains, pulses, fruits, vegetables etc. In addition,
there is an immense potential for livestock development and horticulture
on commercial basis. Above all, expeditious implementation of the
project will consolidate the great achievements made by the valiant
soldiers in liberating the Eastern Province from the jaws of the LTTE
entailing many indirect benefits, socially and economically.
10. CLIENT
ORGANIZATION
Mahaweli
Authority of Sri Lanka would be the client organization for this Project
and it is responsible for overall execution of the Project, including
project design, supervision, co-ordination, monitoring, technical
audit etc. with the involvement of relevant line organizations.