Aug 25, 2011 (LBO) – Sri Lanka’s Hambantota port needs extra loans of 147.9 million dollars to cover equipment including cranes, cost escalations in building the port, and digging the basin and entrance channel, the island’s state-run ports agency said. Responding to media reports and critics, Sri Lanka Ports Authority said the port in the island’s South which has a basin 17 metres deep will be able to handle the largest containership operating by now which needs a depth of only 15.5 metres.
Sri Lanka’s Colombo port is 15 metres deep.
The ports authority said the cost of the basin and channel was decided on estimates of ‘hard’ and ‘soft’ material excavation volumes guided by 31 boreholes in the basin and 6 boreholes in channel.
However with more hard material (such as rock) being found in practice the costs had gone up 45 percent for the basin (13.56 million) and 53 percent for the channel (31.02 million dollars) and reduction in soft material causing a net increase of 40.66 million dollars.
Increases in material, labour and equipment based on government price indices and an agreed upon formula had resulted in a total increases of 87.7 million dollars. Loans of 147.7 million dollars were being sought, which would also cover a buil