ADB Backs Port of Colombos Terminal Development

SLPA Manila-based Asian Development Bank (ADB) and the Sri Lanka Ports Authority (SLPA) signed a transaction advisory services agreement today to develop the East Container Terminal (ECT) of Colombo Port through public–private partnership (PPP). The USD 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 terminal is likely to be for 35 years. 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, said Sri Widowati, ADB’s Country Director for Sri Lanka. SLPA has already invested USD 80 million in construction of the 400-meter berth at the terminal. ADB also provided a USD 300 million loan in 2008 to support the construction of the breakwater of the Colombo port. ADB will advise SLPA in developing a bankable PPP structure and organizing a competitive tender process to select the private sector partner, said Ryuichi Kaga, Head of ADB’s Office of Public-Private Partnership (OPPP).