The Asian Development Bank (ADB) and Sri Lanka Ports Authority (SLPA) signed a transaction advisory services agreement to develop the East Container Terminal (ECT) of Colombo Port through Public-Private Partnership (PPP).
The signing was witnessed by ADB President Takehiko Nakao and Finance Minister Ravi Karunanayake.
The $500 million project will include operationalisation of the existing 400 metres of deep water berth and the full design, build, finance, operation, and maintenance of the remaining 800 metres of berth. The concession for the ECT is likely to be for 35 years.
SLPA has already invested $80 million in construction of the 400-meter berth at the terminal. ADB also provided a $300 million loan in 2008 to support the construction of the breakwater of the Colombo Port.
ADB has long supported PPPs and on 1 September 2014 it established the OPPP to provide independent transaction advice on specific deals and develop broader PPP knowledge in the region.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members — 48 from the region.