Realization of the full project benefits was contingent upon the public and private sector components being well coordinated and implemented as planned. Implementation of the private sector component - and especially selection of the private concessionaire for the first container terminal - initially presented a major risk. This was mitigated by linking the progress of selecting a successful bidder for private concessionaire with implementation of the breakwater infrastructure (public sector component) as a condition of loan effectiveness. Although the loan effectiveness condition had to be amended to accommodate the commencement of breakwater construction and allow more time for selecting the private concessionaire, the condition ensured risk mitigation.
Colombo Port Expansion Project