‘Silver Park confident of project implementation’- BOI | Daily News
Proposed Oil refinery project in Hambantota

‘Silver Park confident of project implementation’- BOI

The Board of Investment (BOI) yesterday said in a statement, there was no agreement with Oman’s Ministry of Oil and Gas to invest up to 30 percent of equity in a refinery in the island following a news report which carried a denial from the oil rich state. “However, we are aware that Oman Oil Company has registered their firm intention to participate in equity up to 30%, subject to reaching agreement between the parties,” the statement said.

The BOI statement in full: “We refer to the recent Reuters news report with regard to the above project. We are aware that there is no agreement that has been signed between Oman’s Ministry of Oil and Gas and Silver Park International PTE Ltd with regard to equity arrangements of the project.

However, we are aware that Oman Oil Company has registered their firm intention to participate in equity up to 30%, subject to reaching agreement between the parties. Furthermore, we are aware that Oman Trading International is willing to supply the entire feedstock requirement of the project as well as do the marketing for the products, upon reaching mutually agreed terms.

The investor - Silver Park International PTE Ltd - has conveyed to the Board of Investment their full confidence in implementingthe project.

boost for Hambantota port

New Delhi/Colombo: A proposed oil refinery in Sri Lanka could boost a barely used Chinese-operated port that has piled on debt for the country and fueled criticism of President Xi Jinping’s signature Belt and Road infrastructure-building initiative.

The $3.9 billion refinery project will be located near the southern Sri Lankan port of Hambantota, which was built with funding from Beijing and eventually handed over on a 99-year lease to a state-owned Chinese company in a debt-to-equity swap.

The port in a remote part of the country has become a prime example of what can go wrong in the Belt and Road initiative. Sri Lanka is paying down billions in debt on the project that has raised geopolitical concerns for giving China control of an asset located along key shipping lanes just off southern India’s coastline.

“It will help make the Hambantota port an active port,” said Nalin Bandara, deputy minister of development strategies and international trade at a news conference in Colombo on Tuesday. “The oil tankers will find it easy to reach the refinery through the Hambantota port.”

U.S. officials and Western analysts have criticized many Belt and Road projects as predatory debt traps designed to further Beijing’s long-term geopolitical goals. The projects alarmed policy-makers in New Delhi, who have watched China build up various infrastructure projects in surrounding nations, including next door in rival Pakistan. Malaysia and others have since cancelled or begun to renegotiate Chinese projects.

The export-oriented refinery, which is supposed to begin construction next week, will be built on 585 acres of land and amounts to Sri Lanka’s largest foreign direct investment project, according to Mangala Yapa, a technical adviser with the Ministry of Development Strategies and International Trade.

(Bloomberg.)


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