China’s CM Port makes last payment to Sri Lanka for Hambantota Port
Jun 20, 2018 19:04 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Chinese global port operator China Merchant Port Holdings Limited (CM Port) has paid Sri Lanka the final tranche of US$584 million for its lease of the southern Hambantota Port.
“With this payment CM Port fulfils the US$976 million investment value of the port concession,” Sri Lanka Ports Authority (SLPA) said in a statement.
In terms of the Concession Agreement, CM Port has agreed to deposit a further sum of $146 million to be utilized for port and marine related activities, it said.
“CM Port is one of the most successful global companies in the ports sector, and their investment in the Port of Hambantota can be described as a credible vote of confidence in its potential as well as in the economy of Sri Lanka,” said Parakrama Dissanayake, chairman of SLPA.
In December 2017 two Sri Lankan companies established under the concession agreement, Hambantota International Port Group (HIPG) and Hambantota International Port Services Co. (Pvt) Ltd. (HIPS) officially took over the Hambantota Port.
The two companies established plan further investments of an additional US$ 400 - 600 million on phase I and II of the Hambantota Port.
“These investments will attract many other foreign investors to the country, making Sri Lanka a pivotal maritime and logistics centre,” the statement said.
(COLOMBO, June 20, 2018)