The Sri Lanka Ports Authority (SLPA) has invited expressions of interest (EOI) from potential investors to finance the $325 million needed to make its East Container Terminal (ECT) operational.
The investment will help fund the procurement of equipment, Terminal Operating Software (TOS) for the new gateway and civil construction of a 1320-metre quay wall of the container yard. The SPLA has already developed 575-metres of the quay wall adjacent the yard area and connected facilities.
“The demand for additional capacity is higher than the supply,” said the SLPA in a statement.
The bid for procurement of equipment has already been launched and evaluations are currently being done. The drawdown and availability of funds should be towards the end of Q4 of 2021 and the drawdown will be by the way of three to four tranches up to Q2 of 2023.
The SLPA has invited domesticated licensed commercial banks and specialised banks incorporated in Sri Lanka, international financial institutions, jointly with offshore loan syndicating partners, to provide details of their eligibility to submit financing proposals.
Interested bidders have been asked to submit bids stating their financing credentials and an indicative timeline to execute the proposed financing for the terminal, alongside any letters of support from consortium partners before 1 November 2021.
The SLPA has also recently signed a Build, Own and Transfer Agreement with Colombo West International Container Terminal Limited, agreeing to a lease period of 35 years.
Announced in October 2021, the new West Container Terminal-1 (WCT-1) will be operated by Adani Ports and Special Economic Zone Limited (APSEZ) with John Keells Holdings PLC joining the venture as a major foreign investor. All parties signed the agreement on 30 September 2021.