Cabinet approves ownership structure of HIPG and HIPS

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By 2017-12-07

By Rathindra Kuruwita

Cabinet has approved the proposal by the Minister of Ports, Mahinda Samarasinghe to sign a supplementary agreement on the ownership structure of the Hambantota International Port Group (Private) Limited (HIPG) and Hambantota International Port Services Company (Private) Limited (HIPS) as China Merchant Port Holdings Company Limited (CMPort) is to take over operations of the Hambantota Port on 9 December.

"At present the Sri Lanka Ports Authority (SLPA) holds 100% shares of HIPG and HIPS. As per the clauses 2, 2A and 3 of the concession agreement, 85% of the initial equity share capital of HIPG is to be held by CMPort and its affiliates and 15 per cent of the equity share capital is to be held by SLPA," the proposal by Minister of Ports Mahinda Samarasinghe stated. Moreover, according to clause 2A, 58% of the initial equity share capital of HIPS was to be held by HIPG while 42% of the equity share capital of this will belong to SLPA.

The shareholder agreement on HIPG and HIPS, prepared in line with the Concessionary Agreement was sent to the Attorney General's Department for approval. Writing back to the Ministry, the Attorney General, in a letter dated 27 November, had made a number of recommendations and these recommendations were accommodated in the amended shareholder agreement.

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