Sri Lanka: Colombo Port Expansion Project (formerly Colombo Port South Harbor Development)

Sovereign Project | 39431-013

Summary

The Colombo Port Expansion Project provides for dredging and breakwater construction sufficient to accommodate three terminals, which will be constructed sequentially. The Project includes the establishment of a new marine operations center, relocation of a submarine oil pipeline, provision of navigational aids, and construction of shore utilities. The Project will be developed on a public-private partnership basis. The harbor infrastructure works, i.e., dredging, breakwater construction, and other works, will be implemented by the Sri Lanka Ports Authority (SLPA). The first two terminals will be operational in 2010 and 2015 respectively and constructed by operators chosen through open competitive bidding under a build-operate-transfer concession agreement. The first concession bid will be for one terminal.

Latest Project Documents


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Project Name Colombo Port Expansion Project (formerly Colombo Port South Harbor Development)
Project Number 39431-013
Country Sri Lanka
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2319-SRI: Colombo Port Expansion Project (formerly Colombo Port South Harbor Development)
Ordinary capital resources US$ 300.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Water transport (non-urban)
Gender Equity and Mainstreaming
Description The Colombo Port Expansion Project provides for dredging and breakwater construction sufficient to accommodate three terminals, which will be constructed sequentially. The Project includes the establishment of a new marine operations center, relocation of a submarine oil pipeline, provision of navigational aids, and construction of shore utilities. The Project will be developed on a public-private partnership basis. The harbor infrastructure works, i.e., dredging, breakwater construction, and other works, will be implemented by the Sri Lanka Ports Authority (SLPA). The first two terminals will be operational in 2010 and 2015 respectively and constructed by operators chosen through open competitive bidding under a build-operate-transfer concession agreement. The first concession bid will be for one terminal.
Project Rationale and Linkage to Country/Regional Strategy Colombo Port is the natural transshipment hub port for the South Asian region. However, in recent years Colombo Port lost market share of the regional transshipment market because the fundamentals of the market changed and Colombo Port did not adapt. Colombo Port cannot offer the additional operating capacity required to compete for the Indian subcontinent transshipment market or the depth required to berth the latest generation container ships. Colombo Port will have to develop additional container berths with the required depth to address these capacity and depth infrastructure constraints if it is to remain a transshipment hub port.
Impact Improved port sector performance
Project Outcome
Description of Outcome Improved capacity at Colombo Port
Progress Toward Outcome Likely to be achieved but in a delayed manner due to delayed award of the BOT contract.
Implementation Progress
Description of Project Outputs

Improved harbor infrastructure

South terminal construction completed through PPP

Status of Implementation Progress (Outputs, Activities, and Issues)

Completed

Completed

Completed

Completed

Completed

Completed

Works in progress

Geographical Location Colombo, Sri Lanka
Safeguard Categories
Environment A
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement The Project will not involve any land acquisition or resettlement. Project construction and operation activities will extend seaward from the south end of the existing Colombo Port and not require any additional land either government or private. To link the existing port access road to the new harbor, three government/SLPA buildings will have to be demolished: two warehouses and an SLPA office. The warehouses are presently not used and will not be rebuilt. The SLPA office building will be partially affected and will be partially demolished. The work space of employees will be accommodated in other office buildings within the port area, and thus will not involve construction of a new building. The existing port access road will be used for transport of containers and other imported goods. None of the port access roads will be widened or improved, and thus will not lead to any resettlement impacts.
Indigenous Peoples The Project will not have any differential impact on the different population/ethnic groups. The communities of indigenous people known as Veddha are found mainly in the districts of Badulla, Anuradhapura, and Polonnaruwa, with smaller numbers in other provinces mainly in the east and north. No indigenous people are present in the project-affected area.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services is being carried out to oversee construction supervision work for the dredging, reclamation, breakwater construction and related ancillary works construction. The person-months for international and national consulting services will be decided later. SLPA engaged the consulting services in accordance with ADB's Guidelines on the Use of Consultants. The Project will take 48 months to be completed.
Procurement Goods, related to services, and civil works financed by ADB was procured following ADB's procurement Guidelines. The civil work contract was procured on the basis of international competitive bidding among qualified contractors in accordance with ADB's Procurement Guidelines.
Responsible ADB Officer Chen Chen
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Ports and AviationMr. Susantha Abeysiriwardena45, Leyden Bastian Road
Colombo 1
Sri Lanka
Timetable
Concept Clearance 29 Aug 2005
Fact Finding 12 Sep 2006 to 21 Sep 2006
MRM 30 Oct 2006
Approval 27 Feb 2007
Last Review Mission -
PDS Creation Date 28 Feb 2006
Last PDS Update 27 Mar 2013

Loan 2319-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Feb 2007 25 Apr 2007 02 May 2008 30 Apr 2011 30 Apr 2013 19 Jul 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 480.00 Cumulative Contract Awards
ADB 300.00 27 Feb 2007 300.00 0.00 100%
Counterpart 180.00 Cumulative Disbursements
Cofinancing 0.00 27 Feb 2007 300.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory
Title Document Type Document Date
Colombo Port Expansion Project: Project Completion Report Project/Program Completion Reports Jul 2015
Amendment to Loan Agreement for Colombo Port Expansion Project between Democratic Socialist Republic of Sri Lanka and Asian Development Bank dated 2 July 2012 Loan Agreement (Ordinary Resources) Jul 2012
Amendment to Loan Agreement for Colombo Port Expansion Project Loan Agreement (Ordinary Resources) Apr 2012
Colombo Port Expansion Project Project/Program Administration Manual May 2008
Amendment to Loan Agreement for Colombo Port Expansion Project between Democratic Socialist Republic of Sri Lanka and Asian Development Bank dated 28 April 2008 Loan Agreement (Ordinary Resources) Apr 2008
Amendment to the Loan Agreement for Colombo Port Expansion Project between Democratic Socialist Republic of Sri Lanka and Asian Development Bank dated 01 July 2007 Loan Agreement (Ordinary Resources) Jul 2007
Amendment to Loan Agreement for Colombo Port Expansion Project between Democratic Socialist Republic of Sri Lanka and Asian Development Bank dated 25 April 2007 Loan Agreement (Ordinary Resources) Apr 2007
Project Agreement for Colombo Port Expansion Project between Asian Development Bank and Sri Lanka Ports Authority dated 25 April 2007 Project/Program Agreement Mar 2007
Loan Agreement for Colombo Port Expansion Project between Democratic Socialist Republic of Sri Lanka and Asian Development Bank dated 25 April 2007 Loan Agreement (Ordinary Resources) Mar 2007
Colombo Port Expansion Project Design and Monitoring Frameworks Feb 2007
Colombo Port Expansion Project Reports and Recommendations of the President Feb 2007
Proposed Colombo Port Expansion Project Procurement Plans Jan 2007

Evaluation Documents

See also: Independent Evaluation

No documents found.


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  • 16 May 2013 | Project Result / Case Study

    Sri Lanka Shipping and Maritime Transport

    Large-scale infrastructure investment is making the Colombo Port accessible to a new generation of cargo vessels, helping the island nation realize its regional trade aspirations.
  • 05 Aug 2013 | Video

    Colombo Port Upgrade

    The newly expanded Colombo Port, a successful public-private partnership project that received a $300 million ADB loan, will cement Sri Lanka's position as a major transshipment hub in the region for many years to come. The port can now accept the latest generation of container ships and can move goods faster and cheaper to other ports in the region.