Substantial interest in Colombo Port Development Project  
[Thursday, March 22, 2007 - 9.15 GMT]   

There is substantial interest in proposed Colombo Port Expansion Project, to be carried out with funding from the Asian Development Bank (ADB), which will have two phases - the building of a harbour and 3 container terminals, followed by extension of the breakwater and building of a fourth terminal.

The ADB will provide a US $ 300 million loan for the project that will greatly upgrade the facilities of the Port of Colombo.

Chairman of the Sri Lanka Port Cargo Corporation Mr. Saliya Wickramasuriya said the project will be implemented as a public-private partnership venture. The first two container terminals built within the harbour will be run as Public-Private Partnerships between international organizations and the SLPA, on concessions awarded by international public tender.

The Government of Sri Lanka will decide on the ownership and management of the next two according to market conditions. Current indications are that
there is substantial interest in the project, and therefore the expected timeframe for implementation of the entire project may be considerably shorter than originally planned.

The ADB has said the Project will also help establish a new marine operations center, relocate an underwater oil pipeline and provide navigational aids.

Container-handling capacity will be increased from 3.3 million 20-foot containers in 2006 to 5.7 million by 2010 and eventually to 10.5 million. This expansion will assist Sri Lanka in generating additional income from
transshipment. Foreign direct investment in the ports sector is expected to increase by about $800 million by 2024.

Under the current conflict situation, security measures have been highlighted and incorporated into the project. The project will promote Sri Lanka's overall economic growth by improving its international
competitiveness with lower transport costs and faster delivery times. Faster economic growth will bring benefits to all citizens of Sri Lanka, the ADB says.

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Last Updated Date: March 22, 2007 - 9.15 GMT