Sri Lanka teams up with Chinese firm for $1.4 b port city
Monday, 29 July 2013 00:04
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Reuters: Sri Lanka has finalised a $ 1.43 billion deal with China Communications Construction Co Ltd. to build a city on a 230 hectare site that will be reclaimed from the sea, the Head of the State-run Ports Authority said.
The site is next to the country’s main Colombo Port and Colombo’s historic Galle Face Green seafront. It is also close to where Shangri-La Hotels Lanka Ltd., a subsidiary of Hong Kong-listed Shangri-La Asia Ltd., is building a 500-room hotel.
“The Chinese firm will invest in reclaiming the land and infrastructure of the port city,” Priyath Wickrama, Chairman of the Sri Lanka Ports Authority, told reporters. “It will be given around 50 hectare of reclaimed land on a 99-year lease for its investment.”
The 39-month long construction project will start in September, Wickrama said, adding the city would include eco-parks, residential areas, offices and shopping malls.
Since the end of a nearly three-decade war in May 2009, Sri Lanka has been spending heavily on infrastructure, including ports to attract foreign investments to its $ 59 billion economy.
It has already created new land near the proposed port city as part of its expansion of the Colombo Port to double its capacity by 2015.
