Adani Group Opts Out Of US Funding For Colombo Port Project
New Delhi: Billionaire-led Adani Ports and Special Economic Zone Ltd. has opted out of US funding for the Colombo West International Terminal project in Sri Lanka. The new announcement has come against the backdrop of US prosecutors indicating that Adani Group Chairman Gautam Adani is in an alleged bribery case.
Further, the company said in an exchange filing that the Colombo project is well on track and is expected to be commissioned by early next year.
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“The project will be financed through the company’s internal accurals and capital management plan. We have withdrawn our request for financing from the DFC,” it added.
Last year, in November, the DFC agreed to provide a USD 553 million loan to support the development, construction, and operation of the Colombo West International Terminal, a deep-water container terminal, at the Port of Colombo.
The terminal is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc and the Sri Lanka Ports Authority (SLPA).
Considering China’s rapid expansion in the region, the Adani Group had received $553 million in funding from the US International Development Finance Corp for the Colombo port which holds a strategic significance.
The terminal is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc and the Sri Lanka Ports Authority (SLPA).
The DFC financing was part of the US government’s move to counter China’s growing influence in the Indian Ocean region and was seen as an endorsement by Adani Ports to develop world-class infrastructure.
In September 2021, the Colombo West International Terminal project was initiated when the Adani Ports signed a deal with SLPA and John Keells Holdings, pledging over USD 700 million to expand the capabilities of Colombo Port.
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Colombo is the largest and busiest transshipment port in the Indian Ocean. It has been operating at more than 90 percent utilisation since 2021, signaling its need for additional capacity.
