ADB, Sri Lanka Ports Authority ink agreement for $500m port project via PPP

From left ADB president Takehiko Nakao and Sri Lanka president Maithripala Sirisena (image from ADB website).

Philippine-based Asian Development Bank (ADB) and the Sri Lanka Ports Authority (SLPA) signed on Tuesday a transaction advisory services agreement for the development of a $500 million port project.

The goal is to develop the East Container Terminal (ECT) of Colombo Port through public–private partnership (PPP).

ADB president Takehiko Nakao, and Sri Lanka’s finance minister Ravi Karunanayake witnessed the signing in Colombo, Sri Lanka on Tuesday.

Also Read: Private investments by ADB soars 40% to $2.6b in 2015, covering Asian frontier economies

Sri Widowati, ADB country director for Sri Lanka, said the terminal will maintain Colombo Port’s strategic position as a key trans-shipment hub for global and regional trade.

“The project will bring leading operations and technology from the private sector to improve the port’s value proposition to global shipping lines and increase its market share in the global trans-shipment market,” Widowati said.

The port project will include operationalization of the existing 400 meters of deep water berth and the full design, build, finance, operation, and maintenance of the remaining 800 meters of berth. The concession for the ECT is likely to be for 35 years.

Also Read: PH listed firm EDC signs up $20m debt from ADB for its mega wind energy project

In construction of the 400-meter berth at the terminal, SLPA has already invested $80 million, while ADB has provided a $300 million loan in 2008 to support the construction of the breakwater of the Colombo Port.

Ryuichi Kaga, head of ADB’s Office of Public-Private Partnership (OPPP), said they will advise SLPA in developing a bankable PPP structure and organizing a competitive tender process to select the private sector partner.

“A transparent competitive tender process is expected to deliver the best value for SLPA for the construction and operations of the terminal and can help create a new template for structuring and delivering PPPs in Sri Lanka,” Kaga said.

A long supporter of PPPs, ADB established the OPPP in September 1, 2014 to provide independent transaction advice on specific deals and develop broader PPP knowledge in the region.

Also Read:

ADB to double annual climate financing to $6b by 2020

World Bank to provide $10b, ADB $600m to support Indonesia’s energy, infra project

PH Dealbook: ICTSI unit raises $260m to back Mexico port project

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.