ADB is helping Sri Lanka upgrade the Colombo Port under a public-private partnership project. The public sector will implement harbor infrastructure works, such as dredging and breakwater construction. The private sector will develop and operate three new container terminals. The project will also put up a marine operations center, move an underwater oil pipeline, and provide navigational aids.
|Project Name||Colombo Port Expansion Project (formerly Colombo Port South Harbor Development)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Transport / Water transport (non-urban)
|Gender Equity and Mainstreaming||No gender elements|
|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|
|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.|
|Description of Project Outputs||
Improved harbor infrastructure
South terminal construction completed through PPP
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Works in progress
|Summary of Environmental and Social 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|
|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|
Ministry of Ports and Aviation
Mr. Susantha Abeysiriwardena
45, Leyden Bastian Road
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||0.00||27 Feb 2007||300.00||0.00||100%|
|Status of Covenants|
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Colombo Port UpgradeThe 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.
Sri Lanka Shipping and Maritime TransportLarge-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.