Hambantota Port Development Project - Phase II: 300 million CNY of 1 billion CNY concessional loan cancelled (link to project ID #39024)

Based on Sri Lanka's Department of External Resources (ERD) 2012 Performance Report, EXIM Bank of China, on 17 September 2012, has signed an agreement to provide a total loan of $809.35 million to the government of Sri Lanka for phase II of the port construction in Hambantota (umbrella project #33481). The $809.35 million loan was provided in 3 segments, one of the segment is Government Concessional Loan (GCL)- CNY 1 billion, with 2% interest rate, 0.5% management fee, 0.5% commitment fee and a repayment period of 19 years including 6 years of grace period (captured in this project). According to the Sri Lanka Department of External Resources, 300 million CNY of the 1 billion CNY transaction has been cancelled. This project captures the 300 million CNY that was cancelled, and linked project ID #39024 captures the 700 million CNY that was used to finance the project. For the other two segments of the $809.35 million loan see projects ID #39023 and #39025. Based on ERD Disbursements of Foreign Funded Loan/Grant 2014, EXIM Bank had disbursed a loan amount of US$299,817,176.39 in the period of May to December 2014. China Communications Construction Company has been assigned as the contractor for the second phase of Hambantota port. ERD also reported that China Harbour Engineering Com. Ltd. would also be involved in the project. The project was commenced in 2012, and will include the construction of a quay wall (2140 m long) to accommodate 6 container berths, oil terminal (300 meters long), yard & roads, a flyover bridge, deepening of entrance channel (450 m wide, 840 m long, 18 meter deep), 2 feeder berths, construction of an artificial island (50 Ha) & handling facilities, and excavating a new basin area. An extension has been granted to the project up through May 2018, despite the original completion date being planned for November 2015. As of December 31st, 2017, the project was at 96% physical completion. The new port complex required the acquisition of 1,500Ha of land. The project envisaged a large industrial area and a shipyard facility. The port in Hambantota, deeper than the one at Colombo, is to be used as a refueling and docking station for the Sri Lankan Navy.

Number of official sources

1

Number of total sources

1