CMPort pays final tranche of US$584 m on Hambantota Port deal

The final tranche of leasing the Hambantota Port concession was released by China Merchant Port Holdings Ltd ( CMPort) on Wednesday.

A cheque to this effect was handed over to the Chairman of Sri Lanka Ports Authority (SLPA) – Dr. Parakrama Dissanayake by the Chief Representative of China Merchant Group in Sri Lanka - Ray Ren in the presence of senior port officials and representatives of CMPort, the SLPA said in a media release i ssued on Wednesday.

This makes the single highe s t - eve r Fo r e i g n D i r e c t Investment ( FDI) received by Sri Lanka to date.

This third final tranche follows the first and second tranches released in December last year and January 2018, in amounts $292 million and $97 million.

“With this payment CMPort fulfills the $ 976 million investment value 1 of the port concession and in terms of the Concession Agreement, CMPort has agreed to deposit a further sum of $ 146 million being investment value 2 to be utilised for port and marine related activities,” the release added.

“CMPort is one of the most successful global companies in the ports sector, and their investment in the Port of Hambantota can be described as a credible vote of con- fidence in its potential as well as in the economy of Sri Lanka,” said SLPA Chairman Dissanayake.

The release said two companies established in Hambantota plans to further invest an additional $400 million to $ 600 million on phase I and II of the Hambantota Port.