Asia/Pacific News
Hambantota Port Set to Renew Bunkering services, Receive $400 Million Investment
Sri Lanka Ports Authority (SLPA) has announced a $400 million investment for the Hambantota Port to construct a repair centre and renew bunkering services in the "near future," local media reports.
It was unclear as to where the funding would come from but Arjuna Ranatunga, Shipping and Aviation Minister, was quoted as saying: "There are big investors who are attracted to the Hambantota Port. There has been a request to construct a dockyard."
"After the elections are over, and following discussions with the President and the Prime Minister, we will take forward these developments."
Sri Lankan President Maithripala Sirisena last month dissolved parliament and called elections for August 17, the BBC reported.
SLPA was also reported to be working to renew bunkering operations at the port, an effort started with an initial $109 million investment by the previous government.
In February the government had looked set to exit the bunker business in favour of an operation run at least jointly by the private sector.
New bunkering operations will now reportedly be commenced by the SPLA within "the coming months."
"It is expected to obtain the assistance of bunker brokers for this purpose," said SLPA.
In other planned facilities at the port, under Phase 3 of its development, a dockyard, support services, and a container terminal had been planned for completion by 2023, but it is now unclear as to whether the project will go forward.
"When investors come in the future, we will conduct feasibility studies and repayment measures prior to undertaking a project," said Ranatunga, although SLPA is reported to already be reviewing all past feasibility studies.
SLPA is also said to be planning to repay almost 1.5 billion in commercial loans for the port with revenue from operations in Hambantota.
In April, the SLPA was said to be urgently looking for joint venture partners to run bunkering services at the port.
