Colombo, June 19 (IANS) The government of Sri Lanka has offered a leading Chinese company the contract to build a fuel tank farm and bunkering facility at the new harbour at Hambantota in the southern part of the country, a media report said here Thursday. “The unsolicited project proposal sent by the China Huanqiu Contracting and Engineering Corporation for building the bunkering facility and tank farm at the Hambantota harbour has been approved by the project committee and the cabinet-appointed negotiations committee,” the state-run Daily News reported.

According to the agreement, the total value of the project would be $76.5 million and it would be completed by 2010.

A set of fuel tanks, bunkering facilities, aviation fuel storage facilities and liquefied petroleum gas (LPG) storage facilities will be built as part of the project at Hambantota, about 230 km south of Colombo.

The facilities would be constructed in such a way that they would be able to operate independently with separate loading arms and pipelines connecting the oil and gas jetty.

There is a proposal to take a loan for the project from the Exim Bank in China, the newspaper said.

The Hambantota Port Development Project consists of four stages and is expected to be completed within 15 years. Under the first phase of the project, an industrial port with a 1,000 metre jetty and an oil refinery estimated to cost $1 billion would be constructed.

Although the Hambantota port was initially planned as a service and industrial port, it is expected to be developed as a trans-shipment port at a later stage to handle 20 million containers per year.