The Sri Lankan government said yesterday that it has received the second tranche of the proceeds from China Merchant Port Holdings Co. Ltd on the account of handing over of operations of Hambantota Port.
China Merchant Port Holdings has made a payment of US$ 97.365 million to the Sri Lanka Ports Authority (SLPA) as the second tranche of its investment in the Public-Private Partnership on Hambantota port development, the SLPA said.
The first installment of US$ 292.1 million of the payment subsequent to the agreement signed between Sri Lanka Ports Authority and the China Merchant Port Holdings Co. Ltd., was credited to the US Dollar account of Government of Sri Lanka maintained at the Central Bank last month.
With the second payment, China Merchant Port Holdings has paid US$ 389.462 million to date. The final payment is scheduled to be paid within the within six months of December 9, 2017, when the agreement was signed.
The share ownership agreement to expand and develop the Hambantota Port under a public-private partnership for a 99-year period was formally signed between the Sri Lanka Ports Authority (SLPA) and China Merchant Port Holdings (CMPort) on 9th December. The US$ 300 million initial payment under the lease agreement was officially handed over to Sri Lanka at the signing.
Following the signing of the agreement, the port operations was handed over to Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS).
Under the 99-year lease agreement, CMPort agreed to invest an amount of up to US$ 1.12 billion into Hambantota Port and Hambantota port and marine-related activities.
Ports Authority Chairman Parakrama Dissanayake said CMPort’s investment could be described as a credible vote of confidence in its potential as well as in the economy of Sri Lanka.