BOI signs agreement with Chinese conglomerate Huichen Investment (Holdings) Pvt Ltd to set up and manage a dedicated Chinese Special Economic Zone at Mirigama.

Hon.Anura Priyadharshana Yapa, Minister of Enterprise Development and Investment Promotion hosted the signing of an agreement towards the establishment of a Special Economic Zone (SEZ) dedicated for Chinese Investments at his Ministry. Board members Eshana de Silva and Channa Palansuriya signed the agreement on behalf of the BOI.

According to BOI’s Deputy Director General (Investment  & Promotion), A.M.C Kulasekera, the Chinese Company will “ establish, develop and market the new Special Economic Zone” He added “ the company will initially invest US$ 28 million, but that is just the first phase of the development”. On the issue of marketing the zone, Kulasekera stated “Huichen Investment (Holdings) is a company that is engaged in infrastructure develoment including the construction of Special Economic Zones. In addition their interests extend to a wide range of economic sectors and activities such as machinery and equipment, electric motorcycles, light vehicle assembly, manufacturing buses, ambulances and agricultural machinery. The company is also engaged in coal and metal mining overseas, including in Mongolia but mainly in African countries such as Zambia, Madagascar, Kenya and Angola”.

Huichen Investments have held several meetings with officials of the BOI including Chairman/ Director General Dhammika Perera both in China and in  Sri Lanka. They have conducted several inspections of the site in Mirigama and found it well suited for their operation.

With their vast network of activities and of contacts in Chinese industry, Huichen will be able to market the Mirigama SEZ very effectively. The newly developed SEZ will have standard buildings which will be available to investors for factories. Internal roads, water and power capacity will be enhanced in addition to sewerage and other facilities.

Notable construction at the SEZ will include an administrative building, supermarkets, banks and office areas. The Chinese investors are also looking at developing facilities such as hotels and restaurants. Worker housing will be provided within the industrial block.

The Mirigama Special Economic Zone is a dedicated zone of 161 acres. The existing part of the Mirigama zone, also known as Block A, hosts 10 enterprises in commercial operation which were started by investors from a number of  countries.

The new developments are Block B consisting of 119 acres and Block C of 42 acres. The decision of the BOI to develop the Mirigama Special economic Zone was based on a number of important benefits it offers investors. The prime advantage of the zone is its location, only 40 kilometers from Katunayake International Airport and just 55 kilometers from the Colombo Port.

Another advantage is that the zone is located near suburban towns such as Mirigama, Negombo, Divulipiya and Veyangoda, where there are many young people with education. The Mirigama Industrial park is therefore ideally suited for projects in information technology and business process outsourcing where young and skilled workers are needed.

The zone also has a particularly attractive location, close to Negombo, which has a large tourist population throughout the year with famous beaches and a large number of hotels. This is an additional factor that that makes the Mirigama Special Economic Zone attractive to investors.

The BOI Special Economic Zone at Mirigama has a reliable 33 KW power supply available from the Ceylon Electricity Board. In addition the zone is well supplied with water including drinking water to WHO standards. There are good road links to the zone that can accommodate heavy vehicles. It must also be added that the Mirigama zone has a wastewater treatment plant to cope with sewerage needs.

This will include the construction of internal roads, the development of industrial lands, a water supply scheme, the sewerage and disposal system, power supply and the construction of new buildings, the fencing of common areas and landscaping of the zone.

 

Dilip S.Samarasinghe, Director (Meida & Publicity)
BOI 30/06/09