Indian And Russian Firms Awarded 30-Year Contract To Manage Sri Lanka’s Hambantota Airport
Mattala Airport, named after former president Mahinda Rajapaksa, was one of the major infrastructure projects of Rajapaksa's nearly decade-long rule.
A joint venture between an Indian and a Russian firm have been awarded the management of Sri Lanka's Mattala Rajapaksa International Airport in Hambantota, the government spokesman said on Friday. The $209 million facility was once dubbed the 'world's emptiest airport' due to a lack of flights.
The Sri Lankan Cabinet, which met on January 9, approved the calling of Expression of Interest by prospective parties, government spokesman and minister Bandula Gunawardena told reporters here.
Accordingly, five proposals were received, and the Cabinet-appointed consultative committee decided to award a management contract spanning 30 years to Shaurya Aeronautics Pvt. of India and Airports of Regions Management Co. of Russia.
The Cabinet approved the proposal submitted by the minister of civil aviation and airport services, Gunawardena said.
Mattala Airport, named after former president Mahinda Rajapaksa, was one of the major infrastructure projects of Rajapaksa's nearly decade-long rule.
The project was funded through high-interest Chinese commercial loans.
It was built at a cost of $209 million, with $190 million coming from a high-interest loan from the Exim Bank of China.
Since 2016, the government has been looking for commercial partners to manage the airport as it was making heavy losses.