Sri Lanka Ports Authority (SLPA) has agreed on key terms of Supply, Operate and Transfer agreement (SOT) with China Harbour Engineering Company Ltd., and China Merchants Holdings (International) Company Limited (China Joint Venture). SLPA and the China Joint Venture will establish the Project Company which will develop and operate the container terminal as part of Phase II of the Hambantota Port Development Project in Sri Lanka, comprised of two 100,000 DWT container berths and two 10,000 DWT feeder berths.
The concession period to be granted to the Project Company under the SOT Agreement shall initially be 35 years from the commencement of operation of the SOT Project, which can be extended by five years at the option of the Project Company.
The total capital investment to be made by SLPA and the China Joint Venture into the Project Company shall be approximately USD 601 million, and the capital investment to be made by the China Joint Venture into the Project Company shall be approximately USD 391 million, resulting in the China Joint Venture having a final shareholding in the Project Company of 64.98%.