Green light for H’tota port project

Nadira Gunatilleke and Uditha Kumarasinghe

Cabinet approval has been granted for the Hambantota port development project with a buyer’s credit facility of US $ 307 million opened with the Exim Bank, China.

“This project was only a dream in the past but it has become a reality now”, Information and Media Minister and Cabinet spokesman Anura Priyadarshana Yapa said.

Addressing the weekly cabinet press briefing held at the Government Information Department Auditorium yesterday Minister Yapa said that the Chinese Government has agreed to extend a buyer’s credit facility through the Exim Bank of China, amounting to US $ 307 million for the Hambantota Port Development project.

Cabinet approval has been granted to award the contract for phase one of the project to the Chinese Consortium comprising, M/s China Harbour Engineering Co.Ltd (CHEC), and M/s Sino Hydro Corporation Ltd. Thereafter, the Ministry of Finance and Planning has negotiated with the Government of China and the Exim Bank of China to obtain the required funding.

The interest rate will be 0.9 per cent, the Minister said. The main objective of the project is to expand the port related services using the location advantage of Hambantota for the economic development of the country.

The Government has accorded the highest national priority towards implementing this project considering the significance of its contribution to the country’s development, the Minister added.