A proposal to select a prospective investor for the first phase of the development of 61 fuel storage tanks in the Upper Tank area of the China Bay Harbour in Trincomalee was approved at the meeting of the Cabinet of Ministers held on Monday (1).

Accordingly, the Cabinet approved the relevant procurement process tabled by Minister of Power and Energy Kanchana Wijesekera.

The Cabinet meeting held on 3 January 2022 marked a significant decision as the Sri Lankan Government granted approval to lease 61 fuel container tanks in the Upper Tank area of the China Bay Harbour, Trincomalee. The lease, spanning 50 years, is aimed at facilitating the strategic development of these fuel tanks. Following the decision, Trinco Petroleum Terminal (Private) Limited is set to undertake the lease, initiating the project with a comprehensive feasibility study.

The proposed development plan outlines a phased approach, spanning 16 years and seven phases.  Under the initial phase, nine productive tanks will undergo renovation, a pipeline extending approximately 1.75 kilometres will be laid, and essential supporting facilities will be constructed. 

The entire project is structured under a build-operate-transfer model, allowing for efficient implementation.