Chinese company to manage Hambantota Port as PPP

Monday, 21 November 2016 00:01 - - {{hitsCtrl.values.hits}}

The Government plans to end current negotiations by reaching an agreement with the Chinese company interested in operating the Hambantota Port through a public-private partnership.

According to the Minister of Ports and Shipping Arjuna Ranatunga, the Government has some serious disadvantages in comparing the current value of the Hambantota port against the heavy investment made using borrowed money. The accumulated losses of the Hambantota port have already exceeded Rs.18.8 m.

“There is no profit made from this port. We may not make profits even after 50 years at this rate. Coming out of this unfavourable matter, the Government decided to consider a public-private partnership for Hambantota Port. The negotiations will be completed in a week or two. The profits earned from the Colombo Port is spent repaying the borrowings for Hambantota port,” said Minister Ranatunga, in response to a question raised by UNP MP Buddhia Pathirana.

Confirming the Minister’s plans to go for a public-private partnership, Prime Minister Ranil Wickremesinghe said: “Let’s try and save the Hambantota Port and the Mattala Airport. However, the convention centre and the cricket stadium will cost the public.”

Highlighting social media reports, MP Pathirana requested the minister to clarify the earnings made from trans-shipment and plans to sell the pot. “Social media highlights of a considerable operation underway at Hambantota port, especially in vehicle imports and trans-shipments. Many photos are displayed on the Internet as proof to claim considerable income to the country. Some claim secret plans to sell the port in total,” said MP Pathirana.

Rejecting plans to sell the Hambantota Port, the minister said: “We should have sold it, but all efforts are made to keep the asset and go for a public-private partnership. The Hambantota port is an unbearable burden to the country.” (AH)