Cement at concessionary rates for tsunami reconstruction

TAFREN and the Ministry of Housing & Construction Industry, Eastern Province Education & Irrigation Development have negotiated a discounted rate for cement with six major suppliers for post-tsunami reconstruction.

Six Memoranda of Understanding (MoUs) were signed on Thursday for the supply of 700,000 metric tons of cement in the presence of Ferial Ashraff, Minister for Housing & Construction Industry, Eastern Province Education & Irrigation Development, and Dinesh Goonewardene, Minister for Urban Development and Water Supply.

The type of cement made available will conform to SLS standards (ordinary Portland cement or equivalent). This discounted 'tsunami cement' will be available through selected outlets in the tsunami affected areas during the next 20 months against a coupon system for the reconstruction of houses, hospitals, infrastructural building.

The price per bag inclusive of VAT will be fixed at Rs. 450 in Colombo and Rs. 460 outside Colombo, during 2005. After that, the price may be revised depending on market conditions as per the terms in the MoUs.

Each MoU was signed on behalf of the Government by S. M. Karunaratne, Secretary, Ministry of Housing & Construction Industry, Eastern Province Education & Irrigation Development.

On behalf of the cement suppliers, S. R. Gnanam of Tokyo Cement (Lanka), Rex Hatherley of Lafarge Mahaweli Cement, Peter Spirig of Holcim (Lanka), M. C. Ramakrishna of Ceylon Ambuja Cement,

Kiran Redkar of Ultratech Ceylinco, and Felix Thomas of ICT signed the respective MoU for their company.

The Presidential Taskforce for Rebuilding the Nation (TAFREN) was formed to accelerate post-tsunami reconstruction. It is currently negotiating concessionary supply rates for other essential building materials such as sand and steel in order to facilitate low cost construction.