loader

In December 2009, China Exim bank and Sri Lanka signed a government concessional loan (GCL) agreement worth RMB 1.3 billion for the construction of Mattala Rajapaksa International Airport. The contract was awarded to China Harbour Engineering Company. Opened in 2013 for flight operations, it is the second international airport in country. Media reported the face value of GCL for this project was $209 million prior to the cost overruns while other sources noted that USD loan value of the RMB-denominated China Exim bank loan is approximately $190 million. Initially designed to support about 1 million travelers per year, the airport, serving just over over 50,000 people in 2017, happened to be “the world’s emptiest international airport” that could not provide the financial sustenance to loan repayment. Meanwhile, among other countries including China, India proposed to invest $205 million into the airport for a 70% share for 40 years.

Source

https://china.aiddata.org/projects/33369/

https://global.chinadaily.com.cn/a/202102/09/WS6022214ba31024ad0baa8528_2.html

https://www.theguardian.com/world/2018/mar/26/the-biggest-game-changer-in-100-years-chinese-money-gushes-into-sri-lanka

https://www.forbes.com/sites/wadeshepard/2017/08/14/india-to-sri-lanka-forget-china-we-want-your-empty-airport/?sh=39a4f9e61ece

Leave a Reply

Your email address will not be published.