ADB signs co-advisory agreement with Sumitomo Mitsui Bank to expand East Container Terminal

Wednesday, 29 June 2016 00:56 - - {{hitsCtrl.values.hits}}

The Asian Development Bank (ADB) and Sumitomo Mitsui Banking Corporation (SMBC) have signed a co-advisory services agreement to provide co-advisory services to the East Container Terminal (ECT) of Colombo Port, the ADB said in a statement.

SMBC will join ADB’s ongoing advisory services for ECT as co-advisor in relation to preparing, structuring, and procuring the $500 million project, which includes operationalisation of the existing 440 metres of deep water berth and the full design, build, finance, operation, and maintenance of the entire 1,200 meters of berth. The concession for the ECT is likely to be for 35 years.

“This co-advisory agreement will allow the Sri Lanka Port Authority to benefit from the in-depth market experience of SMBC and to structure and tender a bankable project without crowding out private sector advisors,” said Ryuichi Kaga, Head of ADB’s Office of Public-Private Partnership (OPPP). “ADB will continue to proactively create advisory opportunities for private sector advisors.”

On 23 February, Sri Lanka Port Authority (SLPA) and ADB executed a mandate letter setting out the terms of ADB’s appointment as transaction advisor to SLPA in relation to the project. ADB selected SMBC to act as its co-advisor.

SLPA released the Invitation for Expression of Interest (EoI) for prequalification to bid on 5 June and deadline for submission of EoIs is 21 July.

The agreement is the first co-advisory arrangement since Manila-based ADB signed a public-private partnership (PPP) co-advisory memorandum of understanding with eight leading global project finance banks in May 2015 on the sidelines of ADB’s 48th Annual Meeting of its Board of Governors in Baku, Azerbaijan.