Rs. 19b loan from China for Hambantota Port project

The Cabinet last week granted approval for the Government to obtain a Rs. 19 billion loan (Yuan 960 million) from China to finance the additional expenditure of Phase I of the Hambantota Port Development Project.

The Cabinet approved President Mahinda Rajapaksa's proposal to enter into a Framework Agreement with the Chinese government for a loan from the Exim Bank of China under the Chinese Government Concessional Loan Facility.

The loan will finance the additional cost for ancillary works and the supply of equipment of Phase I of the Hambantota Port Development Project. The construction of the breakwater, approaching channel, harbour basin, stocking yard, roads and administration building of the first phase of the project was completed with financing from China's Exim Bank. The Exim Bank will also provide a one billion Yuan (US$ 157 million) Chinese government concessional loan to finance Phase II of the Hambantota Port Development Project.