The Cabinet of Ministers yesterday approved to obtain further assistance from China to develop Phase I of Hambantota Port Development Project.
The Cabinet approved President Mahinda Rajapaksa's proposal to enter into a Framework Agreement with Chinese government to obtain financial assistance from the Exim Bank of China under Chinese Government Concessional Loan Facility.
The loan will be used to finance the additional cost for ancillary works and supply of equipment of Phase I of the Hambantota Port Development Project.
The Phase I of the Project, under which the construction of the breakwater, approaching channel, harbor basin, stocking yard, roads and administration building were completed, was financed by China's Exim Bank.
The Exim Bank has also agreed to provide a Chinese government concessional loan of 1 Billion Yuan (approximately US$ 157 million) to finance Phase II of the Hambantota Port Development Project.
The proposed project will benefit the local community economically and socially and will generate direct income and indirect employment opportunities in the area.