CMPort to Develop Sri Lanka’s Hambantota Port
- Business & Finance
State-owned China Merchants Port Holdings (CMPort) is set to invest up to USD 1.12 billion in the development, management and operation of Sri Lanka’s Hambantota Port.
The investment was unveiled on July 25, as part of the concession deal terms agreed between CMPort, Sri Lanka Ports Authority (SLPA), the Government of the Democratic Socialist Republic of Sri Lanka (GOSL), Hambantota International Port Group (HIPG) and Hambantota International Port Services Company (HIPS).
The investment would go into Hambantota port and marine-related activities, of which the total amount to be paid to SLPA for the acquisition of the 85% issued share capital of HIPG will be USD 973.6 million and the remaining USD 146.342 million will be used for Hambantota port and marine-related activities over a period of one year.
Under the 99-year concession agreement, SLPA and GOSL will grant the right to develop, operate and manage the Hambantota Port to HIPG, while the right to develop, operate and manage the common user facilities for the operation of the port will be granted to HIPS.