China Merchants Port Holdings has announced that the stakeholders have decided to completely abandon the South Asia Commercial and Logistics Hub (SACLH) project, which was planned for implementation at the Port of Colombo.
A statement issued by the company confirms the abandonment of this major project, which represented an investment of US$ 392 million. The statement further notes that the Sri Lanka Ports Authority is required to pay a one-time compensation of US$ 21.9 million to the investors within 30 days of the signing of the termination agreement.
The statement adds that, taking into account various factors including external influences affecting the project and changes to the project timeline terminating the project is considered the most favorable outcome for all parties involved. The Chinese company in question held a 70% stake in this project, while the remaining shares 15% each were held by the local firm Access Engineering and the Sri Lanka Ports Authority (SLPA). Consequently, the company and the Ports Authority are now required to pay a compensation of US$ 21.9 million to China Merchants Port Holdings.