News:Asia

China Merchants Port seals $1.12bn concession agreement for Sri Lanka’s Hambantota

China Merchants Port (CMPort) said it has sealed a 99-year concession agreement for the development, management and operation of Hambantota Port in Sri Lanka.

In the agreement signed with Sri Lanka Ports Authority (SLPA), the Sri Lanka government, Hambantota International Port Group (HIPG) and Hambantota International Port Services Company (HIPS), CMPort ha agreed to invest up to $1.12bn into Hambantota Port and Hambantota port and marine-related activities, it said in a press release.

Out of this, it will pay SLPA $973.7m for the acquisition of the 85% issued share capital of HIPG, who will in turn, use a portion of this to acquire a 58% stake in HIPS.

The remaining $146.3m will be used for such Hambantota port and marine-related activities as may be agreed with the government within one year from the final payment of capital injection in HIPG. CMPort will be allowed to repatriate any amounts not used after one year.

The concession agreement grants HIPG the sole and exclusive right to develop, operate and manage Hambantota Port and HIPS, the sole and exclusive right to develop, operate and manage the common user facilities, for the operation of the Hambantota Port.

Posted 27 July 2017

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Vincent Wee

Hong Kong and SE Asia Correspondent, Seatrade Maritime News

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