SLPA looks for US$325 million funds to proceed with East Container Terminal project

The Sri Lanka Ports Authority (SLPA) is looking for US$325 million funds to make its newly built East Container Terminal (ECT) operational.

The SLPA has now invited expressions of interest (EOI) from eligible domestic/international banks and financial institutions, to finance procurement of required equipment and terminal operating system for the new gateway.

The port authority has already developed 575-meter of the quay wall, adjacent yard area, and connected facilities at the ECT.

In order to enhance development and to operate ECT as a highly equipped container terminal, SLPA requires investing further funds for balance civil construction of 1320-meter quay wall of the container yard, alongside the procurement of equipment and terminal operating system, the SLPA said in its call for EOI.

The SLPA will use its own internally generated funds to finance the remaining investment requirement for the ECT.

The demand for additional capacity is higher than the supply says SLPA

“The demand for additional capacity is higher than the supply,” the SLPA mentioned justifying the establishment of the new terminal.

The port authority will require the fund by the end of the fourth quarter of 2021 and the drawdown will be by way of three to four trenches up to the second quarter of 2023.

The interested banks and financial institutions have been asked to submit bids stating their financing credentials, mentioning whether they have earlier disbursed/syndicated to state-led/owned infrastructure projects in Sri Lanka, funds disbursed/syndicated to SLPA and private sector ports and logistics sector in Sri Lanka in the past by the end of this month.

The annual handling capacity of the ECT will be 2.4 million TEU having three berths and water draft of 18 meters.