Eco laws tighten for Hambantota port industries

March, 18, 2014

It has been revealed that the President had decided to tighten the environmental recommendations for the chosen industries to be established in the Hambantota port complex. Hence, the particular companies have to again prepare their environmental assessment reports of their projects, said Sri Lanka Ports Authority (SLPA) chairman Dr. Priyath Bandu Wickrema while speaking to AdaderanaBiz.

There are already 11 companies earmarked to establish industries within the Hambantota port complex and the government is to offer them the land on lease.

While these industries have planned to invest some US dollars 1.6 billion, they have proposed to set up businesses like petroleum, petro chemicals, container terminals, LP gas storage and distribution etc, said the SLPA chairman.

Land from the Hambantota port complex is to be leased to Advance Surfacants of India to set up a processing plant for aviation fuel and there are plans to invest some US dollar 261 million in this project.

Land is to be leased to Energy World International Ltd for a liquefied natural gas terminal and for generation of electricity. The investment is estimated at around USD 1.35 million.

This liquefied natural gas terminal is to be exported to the region and also provide natural gas to the transport and maritime sectors.

Meanwhile, it has also been revealed that a liquefied natural gas power generation with an output of 1200 megawatt would be built within the port complex since the Ceylon Electricity Board is prepared to purchase the generated electricity.

Though liquefied natural gas power generation has not been included in the Ceylon Electricity Board’s power generation plans, Cairns Limited of India has already discovered several natural gas deposits off the coast of Mannar.

If these deposits are commercially viable the gas is expected to be obtained by 2017.

Meanwhile, the Rank Container terminal is to be constructed to control containers, store petrochemicals and to provide re-exporting facilities.

Laugfs Gas is another company which is to lease land within the Hambantota port complex. This is for an investment of around USD 20 million on a project to set up storage and distribution facilities for the export of liquid petroleum gas.

Laugfs Gas Holdings is to set up a lubricant mixing plant and power retailing with an investment of USD 1.14 million.

These investments have been approved after applications were called for the second time to set up industries in the Hambantota port complex. Facilities for a sugar refinery, petrochemical factory, cement factory and stores facilities were approve after the first applications were called for.