The Asian Development Bank (ADB) and Sumitomo Mitsui Banking Corporation (SMBC) today signed a co-advisory services agreement to provide the co-advisory services to the East Container Terminal (ECT) of Colombo Port.

SMBC will join ADB’s ongoing advisory services for ECT as co-advisor in relation to preparing, structuring, and procuring the $500 million project, which includes operationalization of the existing 440 meters of deep water berth and the full design, build, finance, operation, and maintenance of the entire 1,200 meters of berth. The concession for the ECT is likely to be for 35 years.

"This co-advisory agreement will allow the Sri Lanka Port Authority to benefit from the in-depth market experience of SMBC and to structure and tender a bankable project without crowding out private sector advisors,” said Ryuichi Kaga, Head of ADB’s Office of Public-Private Partnership (OPPP). “ADB will continue to proactively create advisory opportunities for private sector advisors.”

On 23 February 2016, Sri Lanka Port Authority (SLPA) and ADB executed a mandate letter setting out the terms of ADB’s appointment as transaction advisor to SLPA in relation to the project. ADB selected SMBC to act as its co-advisor.

SLPA released the Invitation for Expression of Interest (EoI) for prequalification to bid on 5 June 2016, and deadline for submission of EoIs is 21 July 2016.

The agreement is the first co-advisory arrangement since ADB signed a public-private partnership (PPP) co-advisory memorandum of understanding with eight leading global project finance banks in May 2015 on the sidelines of ADB’s 48th Annual Meeting of its Board of Governors in Baku, Azerbaijan.

ADB has long supported PPPs and on 1 September 2014 it established OPPP to provide independent transaction advice on specific deals and develop broader PPP knowledge in the region.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

Photo - The agreement will pave the way for the preparation and rollout of the East Container Terminal project at Colombo Port