Hambantota Deep Sea Port Phase I (PPP)

Hambantota Deep Sea Port Phase I

Locations

Type

Seaport

Status

Completed

Total Reported Cost

505.0 million USD

Initiatives

Start Date

Oct. 01 2007

Start of Construction

Jan. 15 2008

Planned Completion Date

Nov. 18 2010

Funders

Source(s) Amount
307,000,000 USD
54,176,470 USD

Description

This project is for the construction of a deep-sea port in south-eastern Sri Lanka's Southern Province. Currently, construction is between phases II and III, although widespread public anger persists over the financing agreement between the Sri Lankan government and Chinese funders. In December 2016, the Sri Lankan government announced that it would sell an 80% stake in the Hambantota Port to China Merchants Port Holding Co. for $1.12 billion. This announcement triggered protests by trade unions and opposition groups causing the two parties to revise China's stake in the joint venture to 70 percent. The concession agreement was completed on July 29, 2017, and in December 2017, Sri Lanka formally handed over port operations to China Merchants Port Holding. Almost directly across India lies the Gwadar Port, a $46 billion project that is a cornerstone for the China-Pakistan Economic Corridor (CPEC).