USD 300 million ADB loan for Colombo Port expansion
LOAN: The Government of Sri Lanka entered into a USD 300 million loan
agreement with the Asian Development Bank (ADB) for the Colombo Port
expansion project yesterday.
RECORD HANDLING: The busy Colombo Port.
Secretary to the Ministry of Finance and Planning Dr. P. B.
Jayasundera said this is a public and private partnership project and
the total investment will be over USD 780 million.
Apart from this USD 300 million the Government will provide USD 180
million for the project. The balance investment will be pumped through
private sector. The project is scheduled to be completed by 2010, he
The demand for the Colombo Port in South Asia is increasing rapidly
and it is necessary to develop the Colombo port as a regional hub port,
Country Director of the ADB Richard W.A. Vokes said this is the
largest loan the ADB has provided for Sri Lanka.
The grace period of the loan will be five years and the pay back
period of the loan will be 25 years. The repayment will commence after
ADB believes that this flagship project will reduce the handling cost
and the shipping charges in the Colombo port, he said.
Chairman of the Sri Lanka Ports Authority Saliya Wickramasuriya said
they have released the documents for tendering construction work of the
project. Construction work of the project is expected to commence in
September this year.
Developing the shipping industry in the country is a vital part of
the economic development and SLPA is aware of their responsibilities in
this endeavour, he said.
Under this project, public sector funds will be utilised for
construction of the breakwater, the dredging of approach channels and
harbour basin, relocation of the submarine oil pipeline and construction
of ancillary facilities.
The private sector will finance the construction the first container
terminal and procurement of associated handling equipment.
SLPA will implement the project under the supervision of the Ministry
of Ports and Aviation.