Quick Take: China Makes Final Payment for 99 Year Lease on Sri Lankan Port

[TaiShang]

Jun 21, 2018 04:08 PM

Quick Take: China Makes Final Payment for 99 Year Lease on Sri Lankan Port

Sri Lanka's Hambantota port. Photo: VCG

The state-owned China Merchant Port Holdings Co. Ltd. (CMPH) paid a third and final $584 million tranche to the Sri Lanka Ports Authority, as part of a deal that gives China access to the strategic Hambantota deep-water port.

The payment concludes a $1.12 billion deal that was formalized in December under which CMPH took a 70% stake in the port on a 99-year lease. The port is key to the maritime section of China’s Belt and Road Initiative, which involves building a network of harbors across China’s southern sea routes in order to facilitate trade.

Sri Lankan media earlier this month reported that China had delayed the final payment after the Sri Lankan government objected to Chinese plans to develop a man-made entertainment island near the project. It is unclear how the issue was addressed before the final payment.

Hong Kong-listed CMPH is a major state-owned investment holding company with businesses spanning port operations, container shipping, cold storage and logistics.

https://www.caixinglobal.com/2018-0...-year-lease-on-sri-lankan-port-101274353.html

 

[abc123xyx]

what 99 years...

they never going to leave..

you have another Sevastopol..
and another crimea..

 

[zip]

That's great business acumen by China ..They are fishing in South asian waters ..They needed a port and everything went exactly like they planned ..Who need direct investments when you can achieve so many objectives without any risk ..great

 

[Titikaka]

Jun 21, 2018 04:08 PM

Quick Take: China Makes Final Payment for 99 Year Lease on Sri Lankan Port

Sri Lanka's Hambantota port. Photo: VCG

The state-owned China Merchant Port Holdings Co. Ltd. (CMPH) paid a third and final $584 million tranche to the Sri Lanka Ports Authority, as part of a deal that gives China access to the strategic Hambantota deep-water port.

The payment concludes a $1.12 billion deal that was formalized in December under which CMPH took a 70% stake in the port on a 99-year lease. The port is key to the maritime section of China’s Belt and Road Initiative, which involves building a network of harbors across China’s southern sea routes in order to facilitate trade.

Sri Lankan media earlier this month reported that China had delayed the final payment after the Sri Lankan government objected to Chinese plans to develop a man-made entertainment island near the project. It is unclear how the issue was addressed before the final payment.

Hong Kong-listed CMPH is a major state-owned investment holding company with businesses spanning port operations, container shipping, cold storage and logistics.

https://www.caixinglobal.com/2018-0...-year-lease-on-sri-lankan-port-101274353.html

99 years and 1,12 billion, it is really cheap, 1 year with 10 million dollars, this port from Sri Lanka can not make 10 million USD per year for them?

 

[Daniel808]

Congratulations for China and Srilanka for this cooperation
a win win development for both countries.

To supa powa india, please be careful South Asian Waters is not yours, China will protect their and other south asian countries interest there. India cannot bully their neighbour again

 

[haidian]

this port from Sri Lanka can not make 10 million USD per year for them?

Clearly not, and the margin must be huge in Sri Lanka's favor, otherwise they won't leave it.