Right Off

Shipping industry watchers say donors could be more receptive to fund the South Port project, with private port operator SAGT loosing its first right of refusal. Shipping industry watchers say donors could be more receptive to fund the South Port project, with private port operator SAGT loosing its first right of refusal. A 75 month deadline, from the day the govt., proposed to build the breakwater for the South Port ended Dec. 5, ending SAGT’s first right of refusal.

The first right of refusal was granted to the private port operator through the concession agreement signed by the government when it divested a part of the Colombo port to a consortium led by P&O Port and Lankan conglomerate John Keells Holdings.

Donors prefer to award contracts on a competitive basis when it comes to funding projects and are not too keen on having earlier concession agreement obligations in the way, says an industry watcher.

In addition, the industry watchers say the development would also help attract more bidders, with all interested parties bidding on a level playing field – at least in theory.

Officials close to the project meanwhile say that SAGT anyway