The Asian Development Bank (ADB) and the Sri Lanka Ports Authority (SLPA) have signed a transaction advisory services agreement to develop the East Container Terminal (ECT) of Colombo Port through public–private partnership (PPP).
The $500 million project will include operationalization of the existing 400 meters of deep water berth and the full design, build, finance, operation and maintenance of the remaining 800 meters of berth.
The concession for the ECT is likely to be for 35 years.
“The terminal will maintain Colombo Port’s strategic position as a key trans-shipment hub for global and regional trade,” said Sri Widowati, ADB’s Country Director for Sri Lanka.
“The project will bring leading operations and technology from the private sector to improve the port’s value proposition to global shipping lines and increase its market share in the global trans-shipment market.”
“ADB will advise SLPA in developing a bankable PPP structure and organizing a competitive tender process to select the private sector partner,” added Ryuichi Kaga, Head of ADB’s Office of Public-Private Partnership (OPPP).
SLPA has already invested $80 million in construction of the 400-meter berth at the terminal.
ADB also provided a $300 million loan in 2008 to support the construction of the breakwater of the Colombo Port.