Deal signed to develop Sri Lanka bunker facility
China and Sri Lanka have signed an agreement to develop the latter's Hambantota district, which includes setting up a harbour, bunkering system and tank farm, a news report said.
The agreement is part of the two countries' ''establishment of friendship city relationship'' pact, which was signed during the recent visit of Sri Lanka president Mahinda Rajapaksa to China, The Hindu reported.
A joint communique was issued at the conclusion of the Rajapaksa's visit that said Sri Lanka expressed gratitude for assistance given in the form of technical support and financial aid for major infrastructure projects.
''It was noted that discussion has proceeded on the Hambantota Development Zone, which includes developing a harbour, bunkering system and tank farm, and that positive progress was made between the Chinese companies concerned and the Sri Lankan authorities,'' the communique said.
''The Chinese side assured it would encourage and facilitate financial institutions to effectively examine feasibility reports and other aspects on the priority project to enable its early commencement.''
Observers believe the Hambantota Development Zone agreement could be significant to China's interest in enhancing its influence in the Indian Ocean.
The proposed development of the bunkering facility at Hambantota is expected to be operational within two years, according to the Sri Lanka Ports Authority (SLPA).
The bunkering facility is expected to deliver 500,000 metric tonnes (mt) of oil products per year.
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| Proposed bunkering facility at Hambantota to be operational in two years |
A joint communique was issued at the conclusion of the Rajapaksa's visit that said Sri Lanka expressed gratitude for assistance given in the form of technical support and financial aid for major infrastructure projects.
''It was noted that discussion has proceeded on the Hambantota Development Zone, which includes developing a harbour, bunkering system and tank farm, and that positive progress was made between the Chinese companies concerned and the Sri Lankan authorities,'' the communique said.
''The Chinese side assured it would encourage and facilitate financial institutions to effectively examine feasibility reports and other aspects on the priority project to enable its early commencement.''
Observers believe the Hambantota Development Zone agreement could be significant to China's interest in enhancing its influence in the Indian Ocean.
The proposed development of the bunkering facility at Hambantota is expected to be operational within two years, according to the Sri Lanka Ports Authority (SLPA).
The bunkering facility is expected to deliver 500,000 metric tonnes (mt) of oil products per year.
Lee Hong Liang | Mon Mar 5 03:05 GMT 2007