China funds two flagship development projects

ASSISTANCE: As a follow up to the State visit of the President to China in February a delegation led by Minister of Enterprise Development and Investment Promotion, Dr. Sarath Amunugama visited China to meet with the Ministry of Commerce of China and the Exim Bank.

They reviewed the implementation arrangements for the Hambantota Port Development Project and the Puttalam Coal Power Project complete work as scheduled.

The delegation had discussions with the Assistant Minister of Commerce Chen Jian and President of the Exim Bank Li Ruogu, on overall development assistance extended by China to Sri Lanka, with special emphasis on the expeditious processing of the funding arrangements to the tune of US $ 308 million for the Hambantota Port Development Project.

The high priority attached by the Chinese Government for the Hambantota Project was highlighted in the discussions confirming early finalisation of procedural issues to facilitate the implementation. The Minister thanked Jian and the Ruogu for releasing the first tranche of US $ 68 mn for the Puttalam Coal Power Project.

The project being the first ever coal power plant in Sri Lanka, is fully funded by the Exim Bank with a long term project financing of US $ 455 million.

The Government of Sri Lanka had already completed the settlement schemes for re-settlers and access roads to the project site.

The China National Machinery and Equipment Import and Export Corporation (CMEC) and China Harbour Engineering Company have already commenced work at the relevant sites in Sri Lanka with respect to the Coal Power Plant and the Hambantota Port Development Project and has deployed their technical staff for the implementation work.

The Puttalam Power Project would entail the installation of a 300 mw power plant and all the auxiliary facilities including a coal unloading jetty, a 115 km power transmission line and other infrastructure facilities.

The Hambantota Port Development Project will include the construction of a breakwater, two berths and approach channel, deepening of the harbour basin and a berth and the construction of bunkering facility and tank farm.

The Minister also met a number of leading Chinese investors who have expressed their interest in investing in Sri Lanka. Finance Ministry Secretary Dr. P. B. Jayasundera also accompanied the Minister.