(MENAFN- Colombo Gazette) /> Colombo Gazette Home News Sports Business Opinion Advertorial Feature Lifestyle / Events About us Leisure Plus Home China in Sri Lanka China pays final tranche in first investment for Hambantota Port China in Sri Lanka News China pays final tranche in first investment for Hambantota Port June 20, 2018 - 23:20 288 The final tranche of the investment value for the Hambantota Port concession was released by China Merchant Port Holdings Limited (CM Port) today.
The cheque to the effect was handed over to the Chairman of the Sri Lanka Ports Authority (SLPA) Dr. Parakrama Dissanayake by the Chief Representative of China Merchant Group in Sri Lanka Ray Ren in the presence of senior port officials and representatives of CM Port.
This makes the single highest ever Foreign Direct Investment (FDI) received by Sri Lanka to date.
This third final tranche in the amount of US $ 584,194,800 follows the 1st, a 2nd tranches released in December last year and January 2018, in amounts US $ 292 million and US $ 97 million.
With this payment CM Port fulfills the US $ 976 million investment value 1 of the port concession and in terms of the Concession Agreement, CM Port has agreed to deposit a further sum of US $ 146 million being investment value 2 to be utilized for port and marine related activities.
In view of urgent need for viable and efficient operation of the Port of Hambantota, on the direction and leadership of Minister of Ports and Shipping Mahinda Samarasinghe under the guidance of His Excellency the President and Prime Minister, the Sri Lanka Ports Authority (SLPA) and the Government of Sri Lanka entered into the Concession Agreement with China Merchant Port Holdings Limited of Hong Kong in July last year for management, operation and development of the Hambantota Port on a Public Private Partnership model.
On 09th December last year two Sri Lankan companies established under the concession agreement namely, Hambantota International Port Group (HIPG) and Hambantota International Port Services Co. (Pvt) Ltd. (HIPS) officially took over the Hambantota Port thereby making the concluded concession agreement effective.
'CM Port is one of the most successful global companies in the ports sector, and their investment in the Port of Hambantota can be described as a credible vote of confidence in its potential as well as in the economy of Sri Lanka,' said Parakrama Dissanayake – Chairman SLPA.
The two companies established in Hambantota plans further to invest an additional US$ 400 million to US$ 600 million on phase I and II of the Hambantota Port. These investments will attract many other foreign investors to the country, making Sri Lanka a pivotal maritime and Logistics Centre. (Colombo Gazette)
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