China Merchants signs Sri Lanka port deal

Hong Kong: China Merchants Holdings announced that it has signed an agreement with China Harbour Engineering Company and Sri Lanka Ports Authority (SLPA).

Under the agreement, SLPA has agreed that it will grant the right to operate the container terminal in the phase 2 of the Hambantota Port Development Project to the project company to be jointly established between SLPA and the two Chinese companies.

The phase 2 project will include two 100,000 dwt container berths and two 10,000 dwt feeder berths.

The concession period to be granted to the project company under the agreement will be 35 years from the commencement of operation of the project, which can be extended by five years.

The two Chinese companies will jointly invest $391m to get 64.98% equity in the project company. [17/09/14]

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