Ending the Colombo East hullabaloo for ever, Indian based Adani Ports Group has entered into a pact with Sri Lanka Government last month, official document confirmed. .
The letter of intent for the West Container Terminal (WCT) of the Colombo Port was signed and accepted along with the initialled Build, Operate and Transfer Agreement on May 3, informed official sources said.
A consortium company has also been incorporated under the name of West Container International Terminal (Pvt) Ltd.
The final shareholding will be 51 percent for Adani Ports, 34 percent for John Keells Holdings (JKH) PLC and 15 percent for Sri Lanka Ports Authority (SLPA).
The parties were given 180 days from May 3, 2021, to fulfil conditions precedent, including financial closure and development work, the sources said.
In March, Adani Ports made a statement claiming that it has linked with JKH to develop WCT on a build, operate and transfer basis for a period of 35 years. It said the terminal will be improved and developed to handle a capacity of 3.5 million TEUs.
The quay has a length of 1400 meters and an alongside depth of 20 meters. Adani had earlier eyed the East Container Terminal to be developed along with Sri Lanka and Japan but this was scuppered by union protests and the Government’s desire for the SLPA to manage the facility itself.
Japan was to have lent US$ 500 mn at an interest rate of 0.1% to Sri Lanka to complete the second phase of the facility, which includes an 800 m berth. But the Government’s new policy is to avoid loan-based projects.