Hambantota Port agreement tabled in P’ment

The joint venture agreement between China Merchants Port Holdings and the Government was tabled yesterday in Parliament and ironed out the key concerns of lawmakers. 

The agreement in principle has prevented the use of Sri Lanka, its airspace and seas for China to use as a launch pad in the South Asian region for military objectives instead of civil operations. According to the agreement, the Magampura Mahinda Rajapaksa Port will be a PPP where the Sri Lanka Ports Authority will play a decisive role in terms of monitoring and permitting commercial operations and the Government will have the final call on matters. 

The  use of the port property and the common user facilities is strictly dedicated for the purpose of  the port and marine-related  commercial and development activities  stipulated  in the agreement  and with a strict prohibition  from “using or carrying out any non-port and non-marine related commercial activities and/or activities involving military personnel and /or any kind/type of activities of military nature whatsoever, whether in land, air or in sea, offshore, or offshore within the territory of Sri Lanka will be a violation”.

As per the agreement, the sole authority for granting all requisite permission, clearance and approval for bringing in or berthing warships, submarines or storing, warehousing of any military equipment and machinery, installation of communication networks or facilities shall only be with Sri Lanka. 

The Government is to enforce its own level of domestic environmental and other protections and its own sustainable developments, laws, policies and priorities and submit its commitments in concurrence with and subject to the rules of international law, treaties and conventions. All fossils, minerals, antiquities, structures or other remnants or things either of particular geological or archaeological interest within in the port property or surrounding area shall be deemed to be the absolute property of Sri Lanka. 

Under the terms of the agreement, China Merchants Port Holdings will invest $ 1.12 billion in this PPP project. The Ports Authority will incorporate two separate private limited liability companies in Sri Lanka as independent profit-oriented enterprises, with the two companies capitalised to a cumulative value of $ 1. 4 billion, including through the transfer of assets of the Port of Hambantota and the leasing out of the man-made island.

Minister of Ports and Shipping Mahinda Samarasinghe tabled the agreement, which will be taken up for debate tomorrow in Parliament. (AH)