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Concession Agreement over Hambantota Port development comes into effect

Concession Agreement over Hambantota Port development comes into effect

Written by Keshala Dias

09 Dec, 2017 | 8:22 pm

The Concession Agreement relating to the development of the Hambantota Port through a Public Private Partnership, came into effect today.

A special event was held at the parliamentary complex this morning, under the auspices of Prime Minister Ranil Wickremesinghe, to mark the occasion.

This marks the operationof the agreement signed between the Sri Lanka Ports Authority and China Merchants Port, on July 29.

The Hambantota International Port Group and the Hambantota International Port Services Company, which are companies established under the Concession Agreement, officially took over operations of the Hambantota Port today.

The first installment which is 30% of the investment value, was officially handed over by the China Merchants Group.

The total investment being made by the Chinese for the Hambantota Port adds up to US$ 1.12 billion.

Thirty percent of the investment values comes up to US$ 330 million, however only US$ 292 million was handed over today.

When News1st inquired into the matter, the Ministry of Ports and Shipping stated that US$ 974 million of the total investment will be the loan repayment for the Hambantota Port, while US$ 146 million is entering the country as a direct investment.

The ministry noted, 30% of US$ 974 million was handed in by the Chinese company today.

Meanwhile, numerous views were expressed in various political forums on how the Hambantota Port deal would strengthen the economy.