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Sri Lanka receives US $ 292.1 mn as initial payment for port
26 Dec, 2017
Subsequent to the agreement signed between the Sri Lanka Ports Authority and China Merchant Port Holdings Co. Ltd., US $ 292.1 mn has been credited to the?US Dollar account of the Government of Sri Lanka maintained at the Central Bank?of Sri Lanka as the initial payment for the lease, the Central Bank said today.
The Hambantota port was formally handed over to a China-Sri Lanka joint venture company on December 9.
Following the signing of an agreement, the port operations was handed over to Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS) this month.
As per the agreement, after one month from the effective date 10% of investment value should be paid,?30% of value should be paid after 03 months and the remaining 60% of value should be paid within 06 months.
China Merchants Port Holdings Company Ltd. (CMPort) owns 85% and Sri Lanka Ports Authority (SLPA) owns 15% of the stake in Hambantota International Port Group Ltd. (HIPG), which will undertake the project identified to restructure the Hambantota Port development and transform it to be a commercially-viable national asset in collaboration with the SLPA with an envisaged investment of $794 million.
Hambantota International Port Services Ltd. (HIPS), which will own common user facilities, will be 58% owned by HIPG, and 42% by the SLPA.
Under the 99-year lease agreement, CMPort will agree to invest an amount of up to US$ 1.12 billion into Hambantota Port and Hambantota port and marine-related activities.?(Colombo Gazette)
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