Rs. 100 b Chinese loans for Hambantota Port Phase 2

The Government yesterday announced a staggering Rs. 100 billion Chinese financing for the second phase of the Hambantota Port Development Project.

Spokesman Minister Keheliya Rambukwella said that Cabinet on Wednesday approved a proposal by President Mahinda Rajapaksa in his capacity as Minister of Finance and Planning to enter into relevant loan agreements for the Chinese funding.

He said the Exim Bank of China had agreed to provide a loan of US$ 600 million (Rs. 79 billion) and a Chinese Government Concessional Loan of Renminbi Yuan 1 billion (Rs. 21 billion) to finance Phase II of the project.

Phase I of the Hambantota Port Development Project was implemented with financial assistance from the Exim Bank of China. The main components completed under Phase I were breakwater, approaching channel, harbour basin, stocking yard, roads and administration building.