March 27, 2007 (LBO) – The Asian Development Bank (ADB), which is funding the breakwater and dredging of Colombo port’s expansion project, may take an equity stake in one of its container terminals, an official said.
The South Port project will see three terminals being built in the first phase.
Updated ADB Country Director Richard Vokes said Sri Lanka Ports Authority has called for bids for the breakwater which are to open on April 03, and construction work expected to start in October.
ADB was committed to funding the Colombo port, despite a rebel air attack on an airbase Monday which has raised fears that the conflict might intensify, the regional lender told a news conference in Colombo.
Under the ADB agreement to lend 300 million dollars for the breakwater and dredging, the agency wants the first two terminals in the new port to be built by the private sector.
Vokes also said the ADB will retain its 7.5 percent equity stake in South Asia Gateway Terminals, a privately-owned container terminal run by P&O Ports, which is now owned by the Dubai Ports Authority.
Our stake in SAGT is funded through our private sector arm and it is possible that the ADB might take part in one