CM Port raises first payment for Sri Lanka’s Hambantota Port
Nov 15, 2017 14:59 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – China Merchants Port Holdings (CM Port) has agreed to increase its first instalment payment for leasing Sri Lanka’s southern Hambantota Port to 30% from 10% of the US$1.1 billion deal, a government spokesman said.
The Chinese port operator has agreed to change the agreement it signed with the government to develop Hambantota Port which was built and funded by China.
Sri Lanka’s cabinet of ministers approved a proposal by Minister of Ports and Shipping Mahinda Samarasinghe for amending the deal, the spokesman told a news conference.
Under the previous deal, US$5 million has already been deposited to a special account as security to be transferred to Sri Lanka Ports Authority on the effective date of the agreements.
A first instalment of 10% was to be paid after one month from the effective date. This will now be increased to 30%.
CM Port has agreed to amend the deal to pay another 10% after one month as the second instalments and to pay the balance 60% within 06 months.
(COLOMBO, November 15, 2017)