No sale of land in Hambantota Port to Chinese company

Saturday, 22 September 2018 01:06 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama

The Government yesterday reconfirmed in Parliament that it had not divested land in the Hambantota Port to a Chinese company but had incorporated two companies – Hambantota International Port Group Ltd. (HIPG) and Hambantota International Port Services Ltd. (HIPS), which are Public-Private Partnerships to carry forward development plans.

Minister of Ports and Shipping Mahinda Samarasinghe responding to a question for oral answer said: “As per the development agreement signed between the Government of Sri Lanka and Government of China on 7 April 2016, following the Cabinet meeting held in November 2016 it was a framework agreement made on 8 December 2016 which states $ 1.4 billion.

“During subsequent Cabinet meetings in 2017, it was decided to introduce a model of Public-Private Partnership. A concession agreement was also signed where two private companies were decided to be established with necessary capital. The lands were given to Hambantota International Port Group Ltd. (HIPG) and Hambantota International Port Services Ltd. (HIPS), established for this purpose,” he added.

According to the Minister, in 2010, 2012 and 2016 tenders were called for setting up industries in the premises of the Hambantota Port. However, no annual assessment of tax for hectare of land as calculated during the occasion had been obtained by Department of Valuation. The Sri Lanka Ports Authority has assessed $ 50,000 for 2012 and 2012 and $ 56,000 in 2016 per hectare.