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The bid to build and operate a container terminal at an extension to Sri Lanka’s main port is half the value of the cancelled first round, according to two sources.
Negotiations
Colombo-listed Aitken Spence and Hong Kong-listed China Merchant Holdings bid to build and operate the terminal were around half the value offered by bidders in a cancelled first round, according to two sources.
A Cabinet appointed negotiating committee (CANC), a 10 member body, will seek higher royalties.
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"We are going to prepare a proposal and going to say this is the minimum," said an official involved in the deal.
"The rate (royalty offered) is very low; we have a huge investment from ADB (Asian Development Bank) which we have to repay.â€
The ADB, a regional lender, is financing a 300 million dollar breakwater which will protect ships from storms and tides and the deepening the water to allow large container ships to enter.
The sole bid has guaranteed a minimum 125 million do