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S’pore polythene firm in Hambantota
View(s):The Sri Lanka Ports Authority is to tie up with a Singapore petrochemical firm for a multi-million dollar polythene manufacturing complex in Hambantota.
The Cabinet has granted approval for the project following a recommendation by President Mahinda Rajapaksa who is also the Minister of Ports. For this new venture, Peak Energy Private Limited of Singapore has registered its business in Sri Lanka under the name of Hambana Petrochemicals Limited (HPC).
The SLPA is finalising the agreement with HPC. This is after both the Central Environment Authority (CEA) and the Board of Investment gave clearance for the establishment of the plant. It is to be located near the “Magam Ruhunupura Mahinda Rajapaksa Port”.
The decision of the Cabinet is to award HPL “the contract for the operation of Polyethylene Terephthalate (PET) plant” for 25 years subject to the payment of royalty. Ten hectares of land will be allocated for the project.
In terms of a document prepared by the parent company in Singapore, the total guaranteed revenue to the Government at the start will be US$ 600,000. Over a period of 25 years, it will increase to US$ 1,504,047. The manufacturing facility at the Hambantota Port, it is estimated, would produce 420,000 tons of PET resin. The income from royalties and port charges would enhance the income of the Ports Authority, according to the memorandum.
SLPA Chairman Priyath B. Wickrema has been a prime mover in the new project.
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