What are the challenges for the Port City especially amidst the uncertainty and volatility of current markets? How has investor interest been so far? What incentives are offered to make it an attractive proposition?

Thulci stated that the reclamation work was completed during 2019 and now the Project Company have commenced the construction of infrastructure such as utilities, road network and the landscaping of public spaces. He further stated that due to the COVID-19 pandemic there has been some slowdown in activity but with the country getting back to normalcy, the project can also commence construction activities to get back on schedule.

He further mentioned that the Project has floated 10 Requests for Proposals (RFPs) for 10 land slots. The Memorandum of Understanding (MoU) was signed on the Marina with a local party as a temporary arrangement for two years to create the footfall that is required until Port City signs with an international marina operator. Another RFP is for the investment in a mixed-use development project which consists of office, residential and retail space on a three-hectare land extent. However, he further mentioned that during these challenging times it is important to instill investor confidence. The project company who had already invested USD 1.4 billion on the reclamation works, have come forward to invest another a billion dollars on the vertical development.

However, based on their market sounding exercise, he further stated that the investor reactions have been mixed. This was mainly due to Easter Sunday attacks last year and then obviously the recent pandemic. Some investors are adopting a wait and see approach on how the current situation transpires albeit some are quite confident that given the long-term nature of the project, the COVID-19 impact will only be short-term.

He further stated that it is important to recognize that there is intense competition in the region and for the Port City to be positioned as an attractive proposition, the project needs to be competitive to attract foreign capital flow. Thulci also highlighted that the proposed SEZ law is crucial for the Port City to be able to market and position competitively.

Thulci mentioned that Port City was structured in two ways;

1. Hard infrastructure
2. Soft infrastructure

The Port City project is a public private partnership where the Project Company has come forward to make the investment to have the required Hard infrastructure. The GoSL have to make sure that the Soft infrastructure is in place so the Port City can go to market. There has been delays from the GoSL in getting the Soft Infrastructure implemented. He is presently aware that the three-member cabinet committee appointed to review the drat SEZ law has concluded its review and hopes that the Port City Special Economic Zone Law could be implemented before the end of 2020.