The Government has decided to enter into an agreement with China Merchants Holdings (International) Company Ltd to develop the Hambantota Port on basis of a Private-Public Partnership (PPP) with 80 per cent of the shares transferred to the company.
The port project is being developed at an estimated cost of US$1,394 million, with the government expected to convert US$1,080 million as equity under this agreement with the Chinese company.
It is a flagship company of the China Merchants Group and invested in the upgrading of the Colombo South Container Terminal.
It had also bid for the Mattala Airport for which the government had received two proposals.
These two projects were carried out by the previous government with financial assistance from China. A government source said a large percentage of the loans obtained for these projects would be converted to equity.
“This will help us reduce the debt burden to a great extent. It is a main budgetary requirement,” he said.
The government is also hoping to develop the SriLankan airlines on the lines of a PPP with several parties submitting 'Expressions of Interest'. (Kelum Bandara)
ANTON Saturday, 22 October 2016 08:33
PEOPLE PLEASING PROJECT - PPP
Reply : 7 2
Manel Saturday, 22 October 2016 09:10
What is there to develop in a gleaming new port
Reply : 3 5
Kanishka Saturday, 22 October 2016 09:15
Good decision by the Govt! China Merchants group which has a partnership for the Colombo port increased profits of it and the ranking went to an overall 26th highest earning port in the world. Its a win-wim for both sides. Its only through privatisation can we make orofits from State institutions which have high corruption by officials.
Reply : 1 19
spirit Saturday, 22 October 2016 09:59
Anyway this belongs to the Rajapakse family. Why others need to spend?
Reply : 4 9
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