Magampura secures US$ 1 b investments
Shirajiv SIRIMANE in Tangalle
The first phase of the Ruhunu Magampura port project in Hambantota
has been able to secure investments to the value of US $ one billion.
Ports Authority Chairman (SLPA) Dr. Priyath Wickrama speaking at the
Hambantota Investment Forum organised by the Hambantota District Chamber
said they allowed an additional investor to be roped in to make this
investment possible.
Dr. Wickrama at the investment forum |
“We called for Request for proposals (REP) for the first stage on the
project and had short listed 13 investors.
“We also granted approval for one more investor and the total
investment pledged by them is now US $ one billion,” he said.
He said the private sector is very cautious when making investments
and if there were rocks or ships unable to sail to the Ruhunu Magampura
Port they would not have invested US $ one billion.
The Chairman said that they will forward these proposals for Cabinet
approval and the project will commence from September. These investors
will be allocated 100 hectares under phase one and an additional 300
hectares for the second phase. The investments include a sugar,
fertilizer and cement plants, two car assembly plants and petro
chemicals related investments.
He said these projects would be for value addition and transshipment
and hence they would not have to pay any duty. They will have to pay
only port related duty.
He also disclosed that they will be calling for REP for the second
stage of the project in October this year and are looking at securing
investments to the country to the value of US $ 5 billion by 2015. “This
includes Colombo and Trincomalee harbours as well.”
Dr. Wickrama also disclosed that they have acquired an additional
1,000 hectares of land beyond the access road for port related
development and relocation of families have been completed. Commenting
on phase two he said that it will be ready by 2014 and then it will
contain 10 berths. “With the experience we gained from the first phase
we would be able to complete phase two more successfully.”
The investment for the first stage is US $ 600 million and for the
second phase it is US $ 800 million making it the biggest single
development project in the country. Over 13,000 are directly employed in
the Colombo Port and they do not want such a high number for the Ruhunu
Magampura project. “We are looking at getting services more outsourced
so that the benefits would trickle down to the residents in the area.”
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