Major development drive with Hambantota port project

Uditha Kumarasinghe

COLOMBO: Symbolising the highly successful State visit by President Mahinda Rajapaksa to China, the Government yesterday signed the Contract Agreement with China to construct phase one of the Hambantota Port Development Project. Work on the first phase of the Government's flagship project will commence in June this year.

The first phase of the project estimated to cost US$450 million is expected to be completed within the next three years, Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama told a media briefing at Galle Face Hotel yesterday.

The project once completed, would generate 6,000 direct and 50,000 indirect employment opportunities locally.

The contract agreements were signed between the Consortium of China Harbour Engineering Company Limited and Syno Hydro Corporation Limited of People's Republic of China and the Sri Lanka Ports Authority (SLPA) for the construction of Hambantota Port.

SLPA Chairman Saliya Wickramasuriya and Vice Chairman Priyath Bandu Wickrama signed the Contract Agreement with the President of China Harbour Engineering Ltd Dr. H. U. Jianhua at Temple Trees yesterday.

Under the first phase of the project, an industrial port with a 1,000m jetty and an oil refinery estimated to cost US$1 billion will be constructed at Hambantota. The proposed port will stimulate development of harbour-related industries such as ship repairs, ship building, bunkering, break bulk, power generation and a free trade zone.

During the President's recent mission to China to commemorate the 50th anniversary of bilateral friendship between China and Sri Lanka, special negotiations were held with Chinese President Hu Jintao to obtain financial assistance to construct the Hambantota Harbour, the Minister said.

Meanwhile, representatives of the Chinese Consortium at a special discussion with President Rajapaksa agreed to commence the initial construction work needed for the Hambantota harbour project within three months.

SLPA Vice Chairman Priyath Bandu Wickrama said due to the President's firm commitment, the Government was able to turn the Hambantota Harbour Project into a reality. Commencement of this mega development project is another giant step of the Government on behalf of the country's future development.

Hambantota Port Development Project consists of four stages. The whole project is expected to be completed within 15 years. Initially Hambantota Port is planned as a Service and Industrial Port. Subsequently, it could be developed as a Transhipment Port in the next two stages to handle 20 million containers per year, he said.

Since the major shipping route is close, off-shore services such as ship handling, supply of water, fuel and crew changes, etc., could be undertaken from the proposed port. In addition, the supplies for power generation and transshipment of vehicles will also be undertaken, he said.

Matara, Ratnapura and Moneragala and a section of the Eastern Province will also be subject to a rapid development due to the construction of the Hambantota port, he said.