The Asian Development Bank (ADB) and Sumitomo Mitsui Banking Corporation (SMBC) have signed an agreement to provide the co-advisory services to the East Container Terminal (ECT) of Colombo Port in Sri Lanka.
SMBC will join ADB’s ongoing advisory services for ECT as co-adviser in relation to preparing, structuring and procuring the $500 million project, which includes operationalization of the existing 440 meters of deep water berth and the full design, build, finance, operation and maintenance of the entire 1,200 meters of berth.
The concession for the ECT is likely to be for 35 years.
“This co-advisory agreement will allow the Sri Lanka Port Authority to benefit from the in-depth market experience of SMBC and to structure and tender a bankable project without crowding out private sector advisers,” said Ryuichi Kaga, Head of ADB’s Office of Public-Private Partnership (OPPP).
“ADB will continue to proactively create advisory opportunities for private sector advisers.”
On 23 February 2016, Sri Lanka Port Authority (SLPA) and ADB executed a mandate letter setting out the terms of ADB’s appointment as transaction adviser to SLPA in relation to the project. ADB selected SMBC to act as its co-adviser.
The agreement is the first co-advisory arrangement since ADB signed a public-private partnership (PPP) co-advisory memorandum of understanding with eight leading global project finance banks in May 2015 on the sidelines of ADB’s 48th Annual Meeting of its Board of Governors in Baku, Azerbaijan.