China Merchant Port Holdings Limited (CM Port) has made a third and final payment of US$585m for the concession of Sri Lanka’s Port of Hambantota.
Combined with the previous two payments, CM Port has invested US$976m to manage, operate and develop the facility. As per the concession agreement, the Hong Kong-based operator will invest a further US$146m into port and marine related activity.
The Sri Lankan Ports Authority (SLPA) and CM Port entered into a concession agreement last July, and CM Port made the first two payments in December 2017 and January 2018.
Parakrama Dissanayake, SLPA chairman, said: “[CM Port’s] investment in the Port of Hambantota can be described as a credible vote of confidence in its potential as well as in the economy of Sri Lanka.”
In December last year, two Sri Lankan companies established under the concession agreement, Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS), officially took over the Port of Hambantota, thereby making the concluded concession agreement effective.
These two companies plan to invest an additional sum ranging between US$400m and US$600m during phase I and II of the facility’s development.