The Cabinet of Ministers approved Ports and Shipping Minister Mahinda Samarasinghe’s proposal to amend the concessionary agreement signed related to the development of the Hambantota port through a Public Private Partnership (PPP).
The investment value of the Hambantota port is currently agreed to be paid by the China Merchant Ports Holdings or its affiliated institutes as follows:
- USD 5 million has already been deposited to a special account as security and it should be transferred to SLPA on the effective date of agreements.
- After one month of the effective date 10 percent of investment value (one instalment) should be paid.
- 30 percent of value should be paid after three months (two instalments)
- Rest of the 60 percent of value should be paid within six months (three instalments)
On the request of the government China Merchant Port Holdings agreed to amend these agreements on foloows:
- To pay 30 percent (one instalment) on the effective date
- To pay 10 percent after one month (two instalments)
- To pay rest of the 60 percent within 6 months (three instalments)
An additional agreement will also be signed on this regard.