Sri Lanka and Australia work together to change lives with clean water
Australian export case study
In a country dealing with the aftermath of civil war and natural disasters, one Australian firm has been working hard with local partners to provide a million people with clean drinking water. For Outotec, and other Australian companies, the more stabilised Sri Lanka of today presents many opportunities.
When your business involves building infrastructure for developing nations the rewards are profound, especially if the result of your work means clean drinking water for a million people.
Take the example of Outotec and Sri Lanka. The relationship between the Australian firm and the country is best captured by turning to tragic events 10 years ago. The Asian tsunami of December 2004 killed over 40,000 people in Sri Lanka and destroyed many coastal villages.
“One of the reasons there was no outbreak of disease was because people had access to clean drinking water from a plant we installed,” says Stephen Giffin, the Director – Drinking Water, Outotec, South East Asia Pacific.
Giffin inspected the water distribution network as soon as possible following the tsunami, and found a tap that had survived the devastation. He collected samples for testing and the water was perfect for drinking. The force of the wave had not damaged the network under the streets, so water supply was still available.
“Knowing our infrastructure produced clean drinking water after the tsunami is still a great source of pride to Outotec,” says Giffin.
Outotec’s business in Sri Lanka
Outotec Pty Ltd – the Australian subsidiary of Outotec Oyj of Finland – designed, supplied, and built a drinking water treatment plant and distribution system in the Ampara district of eastern Sri Lanka.
This area was damaged by the country’s civil war, which ended in 2009, and is now home to a diverse community.
Outotec has a permanent compliment of personnel in Sri Lanka, all of whom are specialists in the areas of construction, electrical and mechanical engineering. Giffin, who has been in Sri Lanka since 2000, says that for the Outotec project model to work, the right local partner is essential.
“They need to understand your product, have access to decision makers, and be in a position to advise you on cultural sensitivities,” says Giffin.
“I’ve seen some of our competitors – who have the funding, the project, and the technology – still waiting after three years for the government approvals because they don’t have the right local people.”
Working for Sri Lanka’s National Water Supply & Drainage Board (NWSDB), in conjunction with local partner, Sunpower Systems, Outotec completed the drinking water scheme in Ampara in three phases.
Opportunities and challenges
Outotec teamed with a local Sri Lankan sub-contractor to prepare a proposal for the initial phase of the Ampara project. There followed a year-long series of negotiations with the Sri Lankan government before Outotec was awarded the contract to build the US$29 million phase one.
Outotec subsequently won the right to build the project’s US$120 million phase two and the US$116 million phase three. Giffin says Outotec got this work ahead of international competitors because the firm provided a technically superior, keenly priced water supply solution supported by export finance.
“One of our strengths is that we can pull together finance from The Australian Export Finance and Insurance Corporation (EFIC) and international banks.”
Giffin says the challenges in Sri Lanka are the same as in any other Asian country – bureaucracy and cultural differences.
“There is a lot of frustration in Sri Lanka, especially when dealing with bureaucratic red tape,” says Giffin. “Be prepared to be patient and wait maybe one or two hours outside an office, and listen to your local partner’s advice.”
Along with water treatment systems developed in Australia, Outotec has brought new construction techniques to Sri Lanka. Previously, local builders might use rudimentary scaffolding, built with what little was available to them, such as odd bits of timber to erect formwork for structures.
“In the Ampara project we introduced system formwork, which we prepare off site,” says Giffin. “It’s like a Meccano set, with no need for adjustments on site.”
Outotec also brought ‘slip form’ to Sri Lanka, a self-contained formwork system that allows vertical construction in a continuous process at a rate of about three metres per hour.
“Instead of taking two years to build a water tower, with slip form, we could finish them in 12 months,” says Giffin.
Outotec’s experience in Sri Lanka
Everything you have heard about the sub-continent’s fixation with cricket is true.
“Cricket helps the working relationship, no question” says Giffin.
“The Sri Lankan people have a real passion for cricket, you’ll talk about it at the start of meetings as an ice-breaker, or if you need a distraction in a meeting that is bogged down.”
However, Giffin also says a Sri Lankan client may not wish to attend a match with foreign associates because it could appear unethical. “People have to be very careful. It serves as a reminder to be cautious about all governance issues.” Giffin says these minor concerns are just part of doing business.
“For example, do not expect to find the right leads or meet the right people on your first visit, and be aware that government approvals are stringent, nothing is certain until all boxes are ticked.”
Working with Austrade
Outotec has worked with Austrade by coordinating dealings between the Outotec, the Australian High Commission in Sri Lanka, and the various Ministries, Departments and agencies of the Sri Lankan Government. This includes accompanying Outotec to meetings with Government officials, and providing feedback, advice, and support to the firm.
“They represent our interests, and can support with issues that may arise, through the Australian High Commissioner.”
With the support of Austrade and local partners, Outotec will complete the third phase of the Ampara projects next year, maintaining sound relations with the Sri Lankan Government and the National Water Supply & Drainage Board.
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