The Sri Lankan Ministry of Resettlement on Friday defended its controversial decision to ask ArcelorMittal, owned by Indian steel tycoon Lakshmi Mittal, to build 65,000 houses for the war displaced in the Tamil-speaking Northern and Eastern Provinces.

Among the bidders, only ArcelorMittal had the required financial wherewithal, and the houses which it is to build, will have far greater facilities than those proposed by its competitors, the ministry said.

The Tamil National Alliance (TNA), Northern Province Chief Minister C.V.Wigneswaran, and building experts, had accused the government of favouritism and slammed the bid to build environmentally unsuitable prefabricated steel and PVC houses at double the cost of building environmentally friendly brick and mortar houses.

But the ministry said that a ArcelorMittal house will have a kitchen with a pantry,  a gas cooker, a gas cylinder, a sink,  and cooking utensils; a dining room with a table and four chairs; a living room with a three piece sofa set, a coffee table, TV stand, TV, and a free standing fan; a master bedroom with a double bed, two bedside tables, and a free standing fan; a second bedroom with two single beds, two single mattresses, a writing table, a chair, a laptop with Wifi facility, and a free standing fan.

The house will also have solar panels, a tube well pump, a 500 litre water tank and ceramic tiled flooring. The total cost is LKR 2.18 million.

Of the 35 bidders, only ArcelorMittal and EPI-OCPC Consortium had paid the bid  price of LKR 650 million. EPI-OCPC had offered to build conventional houses at LKR 1,307,306 a unit  - but there were mere shells without any fittings or conveniences. Besides, EPI-OCPL had not submitted confirmed concessionary financing arrangements, while ArcelorMittal had a detailed financial package from HSBC.

In response to the charge that the houses are flimsy, the ministry said that their lifespan is 60 years and there is a 30-year warranty. On the charge that the houses will be too warm inside, the ministry said that the temperature inside will be at least 3 to 5 degrees celsius lower than outside because of insulation.

The 65,000 houses will be completed in four years.

Even opponents of the contract told Express that the war displaced are accepting the houses despite their inferiority to brick and mortar houses because they are desperately in need of shelter.

“The people have asked us not to oppose the project unless we have a viable alternative,” a Tamil opposition politician told Express.

Source: The New Indian Express

-Agencies