Reclamation of the 243 acre site is set to begin in October and is expected to be completed in 39 months, Sri Lanka Ports Authority chairman Priyath Bandu Wickrema said.
The land will be reclaimed, roads, drainage and telecom facilities laid in a 900 million US dollar project where the investor will get a piece of the reclaimed area.
Reclamation will be carried out by China Harbhour Engineering Corporation, who has been engaged by the investor. The investor itself is expected put in another 2.5 billion US dollars into developing land received.
The balance will be sold on 99-year leases to potential investors.
"We are going to call for an RFP (request for proposals), most probably around the end of 2013. " Wickrema said in the sideline of a shipping conference organized by Seatrade, a events company specialising in maritime trade.
"I expect proposals for hotels, apartment and shopping malls first."
RFPs will be issued once a part of the land has been reclaimed.
Sri Lanka Ports Authority is expecting 15 billion US dollars to pour into the 'port city' where a mini golf course, a Formula I track and a yatch marina is also planned, he told the conference, organized by Seatrade, a marine policy forum specialist.
Wickrema said in August 2012, an RFP for more industries at Hambantota in the island's south will close where a billion US dollars of investments are targeted. In the first round 800 million US dollars of investments were netted.
A 500 million US dollar container terminal by China Merchants International has already started.
Wickrema said a target of 5 billion US dollars in port related investment by 2015 may be reached earlier.