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What is the News?
The Sri Lankan Cabinet has approved a proposal to develop Colombo Port’s West Container Terminal(WCT) under a joint venture with India and Japan.
Note: This proposal comes after Sri Lanka had pulled out of the 2019 tripartite agreement with India and Japan to develop the East Container Terminal(ECT).
About the West Container Terminal(WCT) Project:
- Location: The West Container Terminal(WCT) is strategically located next to a Chinese-run Colombo International Container Terminal(CICT).
- Model: The terminal will be developed on a Build, Operate and Transfer(BOT) model for a period of 35 years.
- Investors: For the project, Sri Lanka has asked India and Japan to nominate the investors. But neither India nor Japan has officially commented on the offer.
- Earlier, India had approved Adani Ports to invest in the ECT project. However, Japan is yet to name an investor.
- Stakes in WCT: India and Japan will have an 85% stake in the West Container Terminal. It is similar to the terms set for the Colombo International Container Terminal(CICT) where China holds an 85% stake.
- Moreover, India and Japan stake in the WCT is better than the earlier deal on the ECT – where they had a 49% stake.
Source: The Hindu
