India grants full funding of USD 61.5 million for the renovation project, aimed at revitalizing the strategic Kankesanthurai Port in Sri Lanka's Northern Province
“Considering the importance of the project, the Indian government has agreed to grant the entire estimated cost of the project, a statement said on Tuesday. (Representational Image: DC)
Colombo: The Sri Lankan Cabinet on Tuesday decided to implement the renovation of the Kankesanthurai Port in the Northern Province with India agreeing to grant USD 61.5 million - the entire cost of the project.
Situated in the northern region of Sri Lanka, the Kankesanthurai Port or the KKS Port, with an area of approximately 16 acres, is located at a distance of 104 kilometres (56 nautical miles) from Karaikal Port in Pondicherry.
The direct passenger ship service connecting Nagapattinam in Tamil Nadu to Kankesanthurai port near Jaffna covers a distance of 111 kilometres (60 nautical miles) in approximately three and a half hours.
“Considering the importance of the project, the Indian government has agreed to grant the entire estimated cost of the project, a statement said on Tuesday.
It added that the project implementation had been delayed as the Economic Value of Equity (EVE) estimated cost provided by consulting service agencies was higher than the relevant loan amount.
Therefore, further discussions have been held with the Government of India regarding the possibility of completing the project under the Public Private Partnership Method,” the statement said.
The original cabinet approval for the project was given on May 2, 2017.
Thereafter, the approval for offering Project Management Consultant Services was given on December 18, 2019.
It was announced in March this year that the project's full cost was USD 61.5 million.( Source : PTI )
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