The government this week signed over a US$ 87 million tender to a Chinese firm to build the proposed Hambantota tank farm and bunkering facility. The government this week signed over a US$ 87 million tender to a Chinese firm to build the proposed Hambantota tank farm and bunkering facility. Project officials at the Shipping Ministry said China Huanqiu Contracting & Engineering Corp. (HQCEC) is due to begin initial ground works as early as November 6, 2005.
The tank farm and bunkering facility are the first phase of a proposed mega port development in the South of the island.
Part of the recently pledged US$ 300 million Chinese soft loan, will pay for the 10 tanks and four pipelines going out to sea.
Sri Lanka will use the infrastructure to set up a bunkering service for ships on the Indian Ocean, South of the island.
An agreement to pursue the project was signed in April, with Chinese engineering company HQCEC signing up to carry out the detailed designs and construction plans.
Coming under the Sri Lanka Ports Authority the bunkering service could be given out to the private sector to operate.