Wednesday Apr 24, 2024
Wednesday Apr 24, 2024
Thursday, 27 June 2019 02:18 - - {{hitsCtrl.values.hits}}
President Maithripala Sirisena yesterday said the Indian partner of the East Container Terminal (ETC) management company would be allocated 15% ownership and 34% would be held by Japan while Sri Lanka would retain ownership with a 51% stake.
President Sirisena speaking to media heads at the President’s House in Fort denied that he had approved a venture that was disadvantageous to Sri Lanka and pointed out that the majority stake would be held by the Sri Lanka Ports Authority (SLPA) and the ETC would be funded through a $500million loan from Japan.
“People are accusing me of being party to selling State assets, but that is not the case. There was a previous proposal, which I was against, and I pushed to have more favourable terms for Sri Lanka. As a result, the Government was able to sign a Memorandum of Cooperation with India and Japan on a new proposal. This is a step that is positive for Sri Lanka,” he said.
On 28 May, Sri Lanka, India and Japan signed a Memorandum of Cooperation (MoC) to jointly develop the long-awaited ETC project in the Colombo Harbour.
The Terminal Operations Company (TOC) conducting all East Container Terminal operations is jointly owned; Sri Lanka retains a 51% stake, and the joint venture partners purchased a 49% stake, a statement by the Ports and Shipping Ministry said at the time. A 40-year loan at an interest rate of 0.1% will be provided by Japan to fund the project.
“The envisaged Japanese loan carries one of the best loan terms Sri Lanka has obtained. The 51% stake is also one of the best in SLPA joint ownership endeavours. SLPA’s majority ownership in the new TOC represents a significant step in prioritising national interests,” the Ports Ministry said when the MoC was signed.
The three Governments will work out details based on the MoC at joint working group meetingsand advance their cooperation towards early commencement of work and operation of the ECT.
