feb 16th
although scepticism is coming from a different direction: the economics of it.
i am more worried about the chinese govt angle.
he's right, there is no need for 2 container terminals in kerala. the one in cochin should not have been sanctioned. it is a clear sop to local vested interests there.
===================
During my recent holiday trip to S.India, when I spent a delightful couple of
weeks in Kovalam beach near Trivandrum, it came to my attention that the state
government of Kerala has decided to proceed with a Rs. 43.6 billion, BOT
container port facility at Vizhinjam port, about 5 miles from the famous Kovalam
beach. I believe the project is now with the Union Government for final
clearances (including national security, given that two of the three "private
sector" partners are Chinese companies, most likely state-owned).
The lead consultants, L&T, executive summary report can be accessed at
www.keralaports.gov.in , and which concludes by stating that " the project is
marginally financiaqlly viable with IRR on equity at 14.9 percent ... and that
the state government may consider providing capital support to...bridge the
viability gap". News articles report that the Kerala state government will
contribute Rs. 1.78 billion for a 24 percent equity stake and a further Rs. 800
million in infrastructure developments .. I guess these are in addition to the
so-called capital support to bridge the financial viability gap.
The consortium that won the bid consists of three partners: the Mumbai-based
Zoom Developers; and two Chinese companies, the Kaidi Electrical Power Company
and the China Harbor Engineering Company.
My concerns about this possible "white-elephant" include:
Is there sufficient market demand for two major container facilities within a
few hundred miles of each other and in the same state ?... a major facility
is being constructed by Dubai Ports at Cochin harbor. The L&T report
conveniently avoids any analysis of this potential cannibalization of market
share.
Environjmental and Social Impacts. L&T conducted the env't and social
analyses with the Loyola College of Social Sciences -- I'm not sure how
credible or objective this was. The project is very likely to destroy the
vibrant tourism sector along the Kerala coast near Trivandrum which literally
employs tens of thousands of the local community. In contrast, the new port
facility is only likely to employ about 820 workers initially and 2,700 by
2017.
Does this project warrant state subsidies when there are higher priorities to
reduce poverty in rural areas of India and when Kerala state government
finances are so precarious?
What are the national security concerns with the participation of two Chinese
(possibly state-owned) companies in the consortium?
Would appreciate a debate on this project proposal, especially by our colleagues
in the know in India. With best regards,
weeks in Kovalam beach near Trivandrum, it came to my attention that the state
government of Kerala has decided to proceed with a Rs. 43.6 billion, BOT
container port facility at Vizhinjam port, about 5 miles from the famous Kovalam
beach. I believe the project is now with the Union Government for final
clearances (including national security, given that two of the three "private
sector" partners are Chinese companies, most likely state-owned).
The lead consultants, L&T, executive summary report can be accessed at
www.keralaports.gov.in , and which concludes by stating that " the project is
marginally financiaqlly viable with IRR on equity at 14.9 percent ... and that
the state government may consider providing capital support to...bridge the
viability gap". News articles report that the Kerala state government will
contribute Rs. 1.78 billion for a 24 percent equity stake and a further Rs. 800
million in infrastructure developments .. I guess these are in addition to the
so-called capital support to bridge the financial viability gap.
The consortium that won the bid consists of three partners: the Mumbai-based
Zoom Developers; and two Chinese companies, the Kaidi Electrical Power Company
and the China Harbor Engineering Company.
My concerns about this possible "white-elephant" include:
Is there sufficient market demand for two major container facilities within a
few hundred miles of each other and in the same state ?... a major facility
is being constructed by Dubai Ports at Cochin harbor. The L&T report
conveniently avoids any analysis of this potential cannibalization of market
share.
Environjmental and Social Impacts. L&T conducted the env't and social
analyses with the Loyola College of Social Sciences -- I'm not sure how
credible or objective this was. The project is very likely to destroy the
vibrant tourism sector along the Kerala coast near Trivandrum which literally
employs tens of thousands of the local community. In contrast, the new port
facility is only likely to employ about 820 workers initially and 2,700 by
2017.
Does this project warrant state subsidies when there are higher priorities to
reduce poverty in rural areas of India and when Kerala state government
finances are so precarious?
What are the national security concerns with the participation of two Chinese
(possibly state-owned) companies in the consortium?
Would appreciate a debate on this project proposal, especially by our colleagues
in the know in India. With best regards,
1 comment:
A good tight slap on secular media !!
Nice one this
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