Biggest single investment ever

rainmaker · 1 Biggest single investment ever Fri Jul 12, 2013 8:36 am

rainmaker

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http://www.lankabusinessonline.com/news/sri-lanka-us$1.5bn-expressway-to-top-china-toll-road-firm/2071954996

Arena · 2 Re: Biggest single investment ever Fri Jul 12, 2013 9:24 am

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great work Mr. MR

Gov. is in a hurry to develop the road net work but I never thought they can do it this much fast. Feel they will bridge the gap we have from 1980 s

Backstage · 3 Re: Biggest single investment ever Fri Jul 12, 2013 1:59 pm

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Hopefully we wont have gaps in the bridges. Smile

Arena · 4 Re: Biggest single investment ever Fri Jul 12, 2013 2:12 pm

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Chinwi · 5 Re: Biggest single investment ever Fri Jul 12, 2013 6:05 pm

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මෙයට වසර කිහිපයකට පෙර විදෙස් රට වලදී තම වාහනයේ මා නංවා ගත් මිතුරන් ගව් ගානක් දුරට විහිදී යන අධිවේගී අන්තර් නගර මං පෙත් හි මා රැගෙන යද්දී .... අනේ මගේ රටෙත් මෙවන් පාරක මෙසේ වාහනයක් පදවාගෙන යන්න මාගේ ජිවිත කාලය තුල මට කවදාවත් හැකි වෙන්නේ නැහැ නේද යයි සිතුන වාර අනන්තයි. ...

Kithsiri · 6 Re: Biggest single investment ever Fri Jul 12, 2013 6:42 pm

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අනේ මේ බොරු වියදම් වලට ඉති ගෙවන්නේ අපේ දරුවෝ නේද කියලා හිතෙනේකොට තමා Shocked

KDDND · 7 Re: Biggest single investment ever Fri Jul 12, 2013 9:45 pm

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As per my point of view.....

I am supporting building of high way network....
I see good benefits to people who will use it and who will not use other roads....

it saving...time, increase the durability of vehicles, save fuel, increase use of time, increase productivity of professionals and leaders....,

my concern are how well do they build it.... how well they well they will maintain the entries and exit of these high ways... specially in and around Colombo area...

if this network will not be like another NORRECHCHOLE..... in rate of commission and level of performances/operations

this proposal will be big step for the country...

happy to wait HAPPILY!!! Cool

econ · 8 Re: Biggest single investment ever Fri Jul 12, 2013 9:57 pm

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None of these roads are building with donations.. all are loans from china.. some day we may end up being Chinese colony for not paying debt.

Kithsiri · 9 Re: Biggest single investment ever Fri Jul 12, 2013 10:34 pm

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KDDND wrote:As per my point of view.....
I am supporting building of high way network....
I see good benefits to people who will use it and who will not use other roads....
it saving...time, increase the durability of vehicles, save fuel, increase use of time, increase productivity of professionals and leaders....,
my concern are how well do they build it.... how well they well they will maintain the entries and exit of these high ways... specially in and around Colombo area...
if this network will not be like another NORRECHCHOLE..... in rate of commission and level of performances/operations
this proposal will be big step for the country...
happy to wait HAPPILY!!!

Show me the increase in the productivity, reduction in the prices of the goods and Employment creation and then I will agree with you on this (wasteful) extravagant legacy making projects.

Chinwi · 10 Re: Biggest single investment ever Fri Jul 12, 2013 10:37 pm

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As per the news and as I understood, it is a toll road company.

... a top toll road operator in China to plan, design, finance, construct and operate ...

That means BOOT or BOO

Note:

BOOT = Financing arrangement in which a developer ,
(1) designs and builds a complete project or facility at little or no cost to the government or a joint venture partner,
(2) owns and operates the facility as a business for a specified period (usually 10 to 30 years) after which
(3) transfers it to the government or partner at a previously agreed-upon or market-price.

BOO = it remains as a property of the company. Normally roads are not taken to this category.

malanp · 11 Re: Biggest single investment ever Sat Jul 13, 2013 8:27 am

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what will be the impact on
1. government debt
2. exchange rate

Then we can quantify the impact on CSE.

All other factors seems to be positive,
government should develop the whole A9 road this way.

Fresher · 12 Re: Biggest single investment ever Sat Jul 13, 2013 9:08 am

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(Without much study about this) I feel that to generate an adequate ROI, the toll would be a significant amount. As long as it justifies the benefits, it is fine.

As for the Southern Expressway, although the government boasts about the revenue collection, I'm unsure about the actual "profit". For once it was a good project but absolutely no point building infrastructure if it does not bring in direct or indirect gains now or in the future.

As Chinwi mentioned, since this seems to be a whole package by the Chinese company, it will not have a burden on the government (how about compensations?) and would be done in a profitable manner. (Hopefully profitable for SL too)

rainmaker · 13 Re: Biggest single investment ever Sat Jul 13, 2013 12:21 pm

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The Kandy Colombo will be the greatest cash cow ever.

Toll roads are good investments. Especially if your bringing production material tax free and having cheap labour.

China Merchants will also own the East port terminal

Chinwi · 14 Re: Biggest single investment ever Sat Jul 13, 2013 1:51 pm

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rainmaker wrote:The Kandy Colombo will be the greatest cash cow ever.

Very Correct.

Their cost of construction will be much lower and they will get the benefit for long time.

The Government may have to pay billions as compensation to the people for acquired lands.

Chinwi · 15 Re: Biggest single investment ever Sat Jul 13, 2013 3:43 pm

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Arena wrote:great work Mr. MR

Gov. is in a hurry to develop the road net work but I never thought they can do it this much fast. Feel they will bridge the gap we have from 1980 s

http://forum.srilankaequity.com/t29794-for-your-weekend-reading#175897

Slstock · 16 Re: Biggest single investment ever Sat Jul 13, 2013 4:31 pm

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First stage of solid development of a country is to have a good transport network.

D.G.Dayaratne · 17 Re: Biggest single investment ever Sat Jul 13, 2013 5:37 pm

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Why the govt do not make same effort in respect of improvement of rule of law
in this country

See Hambatota P.S member case and statement made by British M.P

If this govt give proper attention to improve Rule of Law this may be the BEST GOVT IN SRI LANKA

Kithsiri · 18 Re: Biggest single investment ever Sat Jul 13, 2013 5:50 pm

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slstock wrote:First stage of solid development of a country is to have a good transport network.

Time is money and I agree to some extent but at what cost ? confused

econ · 19 Re: Biggest single investment ever Sat Jul 13, 2013 7:52 pm

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slstock wrote:First stage of solid development of a country is to have a good transport network.

yes but sl should start good railway system first before going for luxury highways for small country like sl.
We have railway system built by the british 100 years ago. no improvement at all.

KDDND · 20 Re: Biggest single investment ever Sun Jul 14, 2013 9:46 am

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Kithsiri wrote:

KDDND wrote:As per my point of view.....
I am supporting building of high way network....
I see good benefits to people who will use it and who will not use other roads....
it saving...time, increase the durability of vehicles, save fuel, increase use of time, increase productivity of professionals and leaders....,
my concern are how well do they build it.... how well they well they will maintain the entries and exit of these high ways... specially in and around Colombo area...
if this network will not be like another NORRECHCHOLE..... in rate of commission and level of performances/operations
this proposal will be big step for the country...
happy to wait HAPPILY!!!

Show me the increase in the productivity, reduction in the prices of the goods and Employment creation and then I will agree with you on this (wasteful) extravagant legacy making projects.

@kithsiri

I meant here professionals and leaders .....
there are mostly individual level benefits when compared to institutional level benefits.....
there are mostly institutional level when compared to country level benefits.......
[i have talked some genuine & fair contributors who used southern high way...... that what they say.... ]

I would agree with you...... TOTALLY...
the most important highway of the country was not the one THE BRAINS OF THIS GOVERNMENT SELECTED & BUILT FIRST...!!!! [southern high way was LESS important when compared to... KANDY, KURUNEGALA & KATUNAYAKE - not in order]

kind of a selfish decision - southern high way.......[ but i reasonably agreed that all most all the government ignored the development of the southern part of the country, so now it may be like - kala dutu kala wala iha ganima wani wadak by this........ so can't balme much... ]

But sincerely and highly believe that once the KANDY, KURUNEGALA, KATUNAYAKE, COLOMBO BY PASS high ways break the most of the trafic limitation - thus give very good opportunities for the GENUINE BUSINESSMEN, PROFESSIONALS, LEADERS to perform well during their best time of short life so the country and mass will benefits it well.

my most concern if HOW THE EXIT and ENTERY point of these highways will manage the trafic...... if this FAIL... almost all benefits expected will be LOSE!

The level of benefit I expected from highways surely will be increase day by day....month by month... year by year...decade by decade.....
so I support this highway network building project but..... I HAVE only 30-60% trusts on effectiveness of building process.....this is PURELY DUE TO POLITICAL MALFUNCTIONING of the KINITHULLO type POLITICIAN of the THIS COUNTRY....no matter who was in..... is in... will be in.... POWER of this country...!!!

Ooops.... to extreme da...am I? ehemama nahe neda???
Smile

GL!

malanp · 21 Re: Biggest single investment ever Sun Jul 14, 2013 9:56 am

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slstock wrote:First stage of solid development of a country is to have a good transport network.

The first stage of solid development is a good rule of law. that is deteriorating on daily basis in sri lanka. Good road network gives a consolation, but we can not reap the full benefits since investors are not willing to invest.

foreign investors had to find justice through their embasies - in Daraniyagala case it is US embassy asking for the justice.

slrkman · 22 Re: Biggest single investment ever Sun Jul 14, 2013 10:40 am

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Warnings to businesses around the Kandy Road!!

What happened now to Sinharaja ,Monis etc. which are in Galle road? The same thing will be happened to merchants around the present Kandy road.

Any1 know when will this project start and finish?

Kithsiri · 23 Re: Biggest single investment ever Sun Jul 14, 2013 10:55 am

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When I changed my residence a few years back, I started exploring the new place; driving around on narrow back roads to see where they would go and how long it would take.
Then I realized that we have a wonderful network of tarred but narrow and poorly maintained back roads like veins in your body connecting to main arteries at strategic points.
I do not think most of them need no more widening but regular and good maintenance is all what is needed to keep the flow of the traffic smooth and not getting stuck.
Same can be said about the Rail network.
Little bit of an extension and regular and proper maintenance are all what we need here and not just more concrete serpents capable only of swallowing money and environment.
Read the success story of Curitiba in Brazil. Very Happy

http://www.pbs.org/frontlineworld/fellows/brazil1203/
We need visionaries to represent us and not hell-bent on legacy making megalomaniacs. Shocked

Jana1 · 24 Re: Biggest single investment ever Mon Jul 15, 2013 2:51 pm

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slstock wrote:First stage of solid development of a country is to have a good transport network.

That is fundamentally sound good.

But if u dig your head more deeper into the SL road network, this is absolutely bleak investment which could probably jeopardize economy in da long run. After 30 years of toll period that road should be maintained by government in addition to existing A9 highway. Due to toll return china could make positive cash flow for their investment. Check road density of developed countries. (km length road per 100 km2 of land area)

Sri Lanka-174
UK-172
Canada-10
Australia-9
Us-60
Norway-29
NZ-35

We are almost beyond our capacity and think about the maintenance cost...It doesn't make any sense na??

Slstock · 25 Re: Biggest single investment ever Mon Jul 15, 2013 3:53 pm

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slstock wrote:First stage of solid development of a country is to have a good transport network.

People did not get the main point here.

In economic terms time is money. Development goes hand in hand with...... ?

Think :
Can a tourist or for business purposes really afford to spend 3 hours to travel 72 miles ( for example) by rail or road? Maybe there are many different paths or means to get from A to B but are they efficient ?

Now , how the network is built is not analyzed in the above statement but only the need is mentioned. Ofcourse the network should be built via efficient and sustainable methods. Whether the Govn is doing that is another matter .

Side note :
Though we can criticize the british for certain issues, we should atleast thank them for a road networks which we used for over a century. We need to now adjust with 21st century if we need to push for development. It will be not be easy with many inefficiencies from top of bottom.

But we need to start somewhere.

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Biggest single investment ever

1 Biggest single investment ever Fri Jul 12, 2013 8:36 am

rainmaker

2 Re: Biggest single investment ever Fri Jul 12, 2013 9:24 am

Arena

3 Re: Biggest single investment ever Fri Jul 12, 2013 1:59 pm

Backstage

4 Re: Biggest single investment ever Fri Jul 12, 2013 2:12 pm

Arena

5 Re: Biggest single investment ever Fri Jul 12, 2013 6:05 pm

Chinwi

6 Re: Biggest single investment ever Fri Jul 12, 2013 6:42 pm

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7 Re: Biggest single investment ever Fri Jul 12, 2013 9:45 pm

KDDND

8 Re: Biggest single investment ever Fri Jul 12, 2013 9:57 pm

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9 Re: Biggest single investment ever Fri Jul 12, 2013 10:34 pm

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10 Re: Biggest single investment ever Fri Jul 12, 2013 10:37 pm

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11 Re: Biggest single investment ever Sat Jul 13, 2013 8:27 am

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12 Re: Biggest single investment ever Sat Jul 13, 2013 9:08 am

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13 Re: Biggest single investment ever Sat Jul 13, 2013 12:21 pm

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14 Re: Biggest single investment ever Sat Jul 13, 2013 1:51 pm

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15 Re: Biggest single investment ever Sat Jul 13, 2013 3:43 pm

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16 Re: Biggest single investment ever Sat Jul 13, 2013 4:31 pm

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17 Re: Biggest single investment ever Sat Jul 13, 2013 5:37 pm

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18 Re: Biggest single investment ever Sat Jul 13, 2013 5:50 pm

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19 Re: Biggest single investment ever Sat Jul 13, 2013 7:52 pm

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20 Re: Biggest single investment ever Sun Jul 14, 2013 9:46 am

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21 Re: Biggest single investment ever Sun Jul 14, 2013 9:56 am

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22 Re: Biggest single investment ever Sun Jul 14, 2013 10:40 am

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23 Re: Biggest single investment ever Sun Jul 14, 2013 10:55 am

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24 Re: Biggest single investment ever Mon Jul 15, 2013 2:51 pm

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25 Re: Biggest single investment ever Mon Jul 15, 2013 3:53 pm

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