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.
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