The Board of China Merchants Port Holdings Company Limited (CMPort) announced that it has agreed on the terms of the Concession Agreement in relation to the development, management and operation of the Hambantota Port, as of 25th July 2017.
The parties included are CMPort, Sri Lanka Ports Authority (SLPA), the Government of the Democratic Socialist Republic of Sri Lanka (GOSL), Hambantota International Port Group Limited (HIPG) and Hambantota International Port Services Company Limited (HIPS).
As informed, CMPort will agree to invest an amount of up to USD 120.00 million into Hambantota Port and its marine-related activities, of which the total amount to be paid to SLPA for the acquisition of the 85% issued share capital of HIPG shall be USD 973.658 million and the remaining USD 146.342 million (equivalent to approximately HKD1,141.47 million) will be utilised for such Hambantota port and marine-related activities.
Pursuant to the Concession Agreement, SLPA and GOSL will grant to HIPG, the sole and exclusive right to develop, operate and manage the Hambantota Port and to HIPS, the sole and exclusive right to develop, operate and manage the Common User Facilities, for the operation of the Hambantota Port.
The term of the Concession Agreement shall commence on the Concession Agreement Effective Date of 99 years.
The Port of Hambantota is located on the Southern coast of Sri Lanka occupying a prime location within 10 nautical miles to the main shipping route from Asia to Europe and is also in a strategic position along the “Silk Road Economic Belt and the 21st Century Maritime Silk Road”.