Press briefing of Cabinet Decision taken on 2024-01-01 (Subject to Confirmation at the next Meeting)

Development of 61 oil storage tanks in the Upper Tank Farm at China Bay, Trincomalee on Build, Operate and Transfer (BOT) basis Business Model

- The Upper Tank Farm at China Bay, Trincomalee consists of 99 fuel storage tanks, and as decided at the Cabinet meeting held on 2022‑01‑03, approval has been granted to lease out 61 tanks from among them to Trinco Petroleum Terminal (Pvt.) Ltd., for a period of 50 years. The initial steps have already been commenced including carrying out a feasibility study for the development of said 61 oil tanks. The feasibility study has recommended to develop this project under 07 phases within 16 years, and under the first phase, it has been planned to refurbish 09 tanks which are economically viable, installation of a pipeline with a length of 1.75 km, and construct other allied facilities. It has been proposed to follow the business model of Build, Operate and Transfer (BOT) for the implementation of this project. Accordingly, the proposal made by the Minister of Power and Energy to follow the relevant procurement process in order to select a suitable investor to implement the proposed development plan to be carried out under the first phase, was approved by the Cabinet.