Chinese money to complete Hambantota port
The Sri Lankan Cabinet has decided to borrow around £1.12 billion to complete phase two of its new international port in Hambantota as well as the construction of a southern railway line.
The official news release in the government of Sri Lanka portal which appears to be a release by Reuters is as follows:
“Sri Lanka Government has decided to borrow more than $1.12 billion from China under concessional terms for the expansion of its new international port and railway construction.
According to a decision taken by the Cabinet of Ministers, the government will borrow $878.2 million from China’s Exim Bank and 1.508 billion Yuan ($237.35 million) under a Chinese government concessional loan for the second phase of a port in the southern town of Hambantota and the extension of a southern railway line from Matara.
The $878.2 million is provided under a preferential buyers credit facility at an interest rate of 2 percent, management fee of 0.5 percent and an annual commitment fee of 0.5 percent with a repayment period of 20 years including a seven year grace period, according to a cabinet memorandums on the loan, seen by Reuters.
China lent $400 million for the first phase of Hambantota port and its Exim Bank has lent $77 million for an oil bunkering facility in the same port. China Communications Construction Company has been assigned as the contractor for the second phase of Hambantota port, which is estimated will cost $808.14 million.”