China Eximbank provides $306.7 million buyer’s credit loan for Phase I of Hambantota Port Development Project (Linked to Project ID #33409 and ID#85184)

On December 30, 2007, China Eximbank and Sri Lanka Ports Authority (SLPA) signed a $306,726,736 million buyer’s credit loan (BCL) agreement for the Phase I of the Hambantota Port Development Project (see Sri Lanka Department of External Resources 'Resource Mobilization'). The original terms of the loan were as follows: LIBOR (4.484 %) plus a 0.75% margin, 15 year maturity, and a 4 year grace period. The interest rate amounted to 5.234 %. During the project implementation period, the London Interbank Offered Rate (LIBOR) increased, pushing up the actual interest rate of the initial loan to 6.5%. Shortly thereafter, the Government of Sri Lanka and China Eximbank renegotiated a fixed interest rate of 6.3% (captured in Project ID#85184). SLPA is the state-owned operator of major commercial ports in Sri Lanka. SLPA is the state-owned operator of major commercial ports in Sri Lanka. This loan agreement was later rescheduled. This project captures the original loan and lending terms. The project involved the construction of two breakwaters (312m long eastern b/w and 988m long western b/w), a 17m deep harbor basin, a 210m wide entrance channel, a service berth, a 100,000DWT general purpose berth, a 100,000 DWT oil berth, and various roads and buildings (including an admin building, public service building and Utility Buildings. China Harbor Engineering Co. and Sinohydro were the contractors responsible for project implementation. Construction of the port commenced on January 15, 2008. The first phase of the port was ceremonially opened on November 18, 2010, with the berthing of the naval ship 'Jetliner' at the port facilities. November 18, 2010 also marked the date of the President’s birthday and the beginning of Phase II of the Hambantota Port Development Project. However, the project was not officially completed until October 30, 2011.

Additional details

In 2013, China Eximbank provided an additional CNY 960 million concessional loan for Hambantota Port Development Phase I for Ancillary Works and Supply of Equipment (see Project ID#33409). It also provided a $65 million loan for the bunkering terminal (See Project ID#33329) and two loans for Phase II of the Hambantota Port Development Project (See Project ID#39023 and Project ID#39024).

Number of official sources

10

Number of unofficial sources

13