Colombo South Container Terminal

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On August 2011, Sril Lanka Port Authority (SLPA) signed an agreement with China Harbour Enginnering Company Ltd (China, 55 %) for the construction, operation and transfer of a new container terminal at Colombo port on a build-operate-transfer (BOT) basis with a term of 25 years. The new terminal, Colombo International Container South Terminal (CICT) designed to give the Colombo port an added handling capacity of 2.4 million TEUs, was to be developed in two phases. Colombo South Container Terminal was a joint venture, China Harbour Enginnering Company Ltd will hold a 55% stake in the company, Sri Lanka’s Aitken Spence will have a 30% stake, while the Sri Lanka Ports Authority (SLPA) will have a 15% holding. The BOT terminal project, awarded following competitive bidding, was the result of Government of Sril Lanka’s economic policy to encourage private sector investment and participation in the development of the country’s port infrastructure. The total cost of the project was estimated at US$ 500 million. And reached financial closure on December 2011, according to an SLPA's source. Information’s about the loan still confidential. Construction work on phase one started on December 2011 few days after the financial closure, and is expected to be completed by April 2014.