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ADB cash to boost region’s prowess
01 May 2007
In line with aims to develop a regional container hub for transhipments to the burgeoning Indian ports, Asian Development Bank (ADB) recently announced its plans to fund the expansion of the port at Colombo, Sri Lanka, with a 25-year loan to the Government of Sri Lanka for $300m.
Structured as a public-private partnership, the Sri Lanka Port Authority (SLPA), a government agency,will use the proceeds to pay for dredging and for developing the breakwater area.
Sealed bids from contractors, responding to a request for proposals on the ADB website for dredging and reclamation,were due in late April. Throughput of 3.3m teu in 2006 is expected to nearly double by 2010, with private interests building individual container terminals.
South Asia Gateway Terminals, whose lion’s share is owned by Dubai Ports World with ADB owning a small minority, would be one potential private investor.
The ADB has also loaned $30m to Bangladesh for the development of the port in Chittagong, under a 25-year loan, with interest tied to the LIBOR structure of interest rates. In this case, funding will support technical assistance, and funds are earmarked for investment in maritime security and information technology.
