Port Dollars

March 20, 2007 (LBO) – The Asian Development Bank has approved a 300 million dollar loan to expand the Colombo Port, the regional lender said Tuesday. The funds will come from its ‘ordinary capital resources’ window at a rate based on the London Interbank offered rate, the bank said.

The loan will have a 25-year pay back period ncluding a 5-year grace period and will be given to the Sri Lanka Ports Authority.

Colombo Port is a natural transshipment hub for South Asia, Prodyut Dutt, a Senior Transport Specialist with ADB’s South Asia Department said in a statement.

In recent years, Colombo Port has lost market share in transshipment because it does not have the operating capacity or depth required to berth the latest generation container ships.

The Colombo South Port expansion project is to be implemented as a public-private partnership with the Ports Authority building a breakwater and carrying out dredging.

The private sector will develop and operate the container terminals, which will be built sequentially.

“The project will also help establish a new marine operations center, relocate an underwater oi