Sri Lanka has offered the development and operation of the West Container Terminal of Colombo South Port to India and Japan as a Public-Private Partnership in collaboration with the Sri Lanka Port Authority.
The cabinet of ministers at its weekly meeting held Monday has granted approval to develop the West Container Terminal on Build, Operate and Transfer basis for a period of 35 years as a public-private partnership with Adani Ports and Special Economic Zone Limited (APSEZ Consortium) and its local representative John Keels Holding PLC (APSEZ Consortium), and the Sri Lanka Ports Authority.
Sri Lanka’s decision to offer the development of West Container Terminal to India and Japan comes after the government scrapped a tri-partite agreement signed by the previous government with India and Japan to develop the Eastern Container Terminal.
The Cabinet of Ministers on 1st February 2021 has approved to operate the Eastern Container Terminal of the Colombo Port as a wholly owned container terminal of the Sri Lanka Ports Authority and develop the West Container Terminal on the basis of operating and developing as a public-private partnership.
The Cabinet granted approval to develop the West Container Terminal on Build, Operate and Transfer basis for a period of 35 years as a Public-Private Limited Company in collaboration with the Sri Lanka Ports Authority and Parties Nominated by Indian and Japanese Governments.
Appointment of a Cabinet Appointed Negotiation Committee and a Project Committee was also approved to evaluate the proposals in this regard.
Accordingly, the Build, Operate and Transfer Plan approved by the Negotiating Committee have been forwarded to the High Commission of India and the Embassy of Japan requesting them to nominate investors.
The Proposal presented by Adani Ports and Special Economic Zone Limited (APSEZ Consortium) has been approved by the Indian High Commission. However, no investor has been named by the Japanese government yet.
The Cabinet appointed Negotiation Committee has presented their recommendation based on the discussions held between the two parties and accordingly, the Cabinet of Ministers has given its approval to the proposal presented by the Minister of Ports and Shipping to develop the West Container Terminal on Build, Operate and Transfer basis for a period of 35 years as a public-private partnership with Adani Ports and Special Economic Zone Limited (APSEZ Consortium) and its local representative John Keels Holding PLC (APSEZ Consortium), and the Sri Lanka Ports Authority.
Courtesy: Colombo Page
