Cabinet green-lights first phase of Trincomalee oil tank development project

Wednesday, 3 January 2024 00:22 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers approved the initiation of the procurement process to select a prospective investor for the proposed development plan’s phase one in the Upper Tank area of China Harbour, Trincomalee.

On 3 January 2023, the Cabinet approved leasing 61 tanks of the total 99 fuel container tanks of the Upper Tank area to Trincomalee Terminal Ltd., for 50 years.

The commencement of the project is marked by the initiation of a feasibility study aimed at developing the 61 oil tanks and the feasibility report recommends a comprehensive 16-year plan divided into seven phases.

Under the first phase, the focus is on renovating nine productive tanks, laying a pipeline spanning around 1.75 kilometres and constructing essential supporting facilities.

The proposed business model for this ambitious project revolves around the Build, Operate and Transfer (BOT) framework.

The proposal to this effect submitted by Power and Energy Minister Kanchana Wijesekera was approved by the Cabinet of Ministers at its meeting on Monday.