Hambantota Deep Sea Port Phase II (PPP)

Hambantota Deep Sea Port Phase II

Locations

Type

Seaport

Status

Completed

Total Reported Cost

809.4 million USD

Initiatives

Start Date

Nov. 15 2012

Start of Construction

Nov. 25 2012

Planned Completion Date

July 15 2015

Funders

Source(s) Amount
158,350,000 USD
600,000,000 USD
51,000,000 USD

Description

Phase I of this project began in 2007 and was completed in 2010. More information about phase I can be found here.

Funding for the port was split into three types of loans, all financed by Chinese companies. The port failed to attract the needed traffic in order to pay back high government debt to China and in late December 2016, President Maithripala Sirisena announced that the port would be lease 80 percent ownership of the port operating companies to China Merchants Holding for $1.12 billion over 99 years. 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.

Photo credit: LAKRUWAN WANNIARACHCHI/AFP/Getty Images

Photo credit: Ishara S.KODIKARA/AFP/Getty Images