The investigation follows a recent report the South China Morning Post, in which the president of Eucador, Rafael Correa, was cited as saying that HPH would have to leave the country if it did not meet its commitments.
HPH spokesman Anthony Tam told Port Strategy that HPH has been “in compliance with the concession agreement”, and reiterated that HPH is committed to the long-term development of port infrastructure in Ecuador so as to maintain its commercial competitiveness in the region.
However, the special investigation commission has been convened in Ecuador on the basis of alleged irregularities during the negotiation between Manta Port Authority (APM) and Hutchison Port Holdings. It will look into whether the agreement is advantageous or not for the country, and will also review delays in undertaking the agreed infrastructure work. The promise at the base of the concession was of an investment of $468m to expand the existing port and also build new deep water facilities.
In Greece, it appears that raising finance has been an issue for the Thessaloniki terminal, where HPH was involved in a 30-year concession with an investment of ¢489m ($643.2m) to upgrade facilities. Salonika Port Authority reports that both HPH and Greek partner Alapis have withdrawn from the concession they were awarded to operate the port’s container terminal – although other reports suggest that there has been a falling out between the two partners as well.