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