The previous Rajapaksa regime had originally made the plan to give the land to a US multinational company through its Singaporean affiliate, but the secretary to the subject ministry had disproved of it.
Also, people of the area, environmentalists and civil society organizations opposed the project.
However, reliable government sources say the New York based CDVCA will now be given the land through Gazelle Ventures of Singapore, as confirmed by cabinet paper MDE/AD/03/CAB)PA/2017.
Their local agent is Islandwide Marketing Services Pvt. Ltd. (IMS), with the shares of the project to be distributed as 88 per cent for Gazelle Ventures, 10 pc for IMS and one pc each for Mahaweli Authority and the farmers.
Money to be obtained from local banks?
However, Gazelle Ventures is to make a mere 150 million dollar on the project, and the money will not be brought into the country as foreign exchange, but will be obtained from local banks.
Will aggravate human-elephant conflict, create other problems
The project envisages to produce just 14 pc, or 80,000 metric tonnes, of the local sugar requirement, and environmentalists warn allotting this vast virgin land for sugarcane cultivation will aggravate the human-elephant conflict and create other serious problems too.
IMS is the same company that mediated unsuccessfully in 2007 to handover land to Britain’s Booker Tate for sugarcane cultivation.
The questionable investment for the project is same as the one made during the Rajapaksa regime for the Embilipitiya paper company, where the facility was mortgaged to a local bank to obtain a loan.
That project too, did not materialize and only ruins of the factory remain.