Adani Ports Leads Colombo West International Terminal to Receive $553 million US Fund
The Colombo West International Terminal Pvt Ltd –a consortium of Adani Ports and SEZ Ltd, Sri Lanka”s leading enterprise John Keells Holdings (JKH) and the Sri Lanka Ports Authority- is set to receive $553 million financing from the US International Development Finance Corporation (DFC). Adani Ports and SEZ Ltd is India”s largest port operator while DFC serves as the US government”s development finance arm.
According to a statement from Adani Ports and Special Economic Zone Limited (APSEZ) the US fund will help the consortium develop deepwater shipping container terminal in the Port of Colombo.
The new terminal will facilitate easing of doing business with growing economies in the Bay of Bengal as the Port of Colombo, which is the largest and busiest transshipment port in the Indian Ocean, has been positioned on the major shipping routes with proximity to these markets.
“(It) will facilitate private sector-led growth and attract crucial foreign exchange to Sri Lanka to aid in its economic recovery,” it added.
The development will foster the enduring legacy of cooperation by US, Sri Lanka and India in the development of sustainable infrastructure, like smart and green ports, the statement added.
DFC in partnership with private sector finances developing Worlds”s critical projects including energy, healthcare, infrastructure, agriculture and small business and financial services.
However, this is the first time the U.S government agency collaborating with Adani group.
APSEZ whole-time director and CEO Karan Adani said, “we welcome the association of the US International Development Finance Corporation (DFC), the US government”s development finance institution, in funding the Adani project.” “When completed, Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the island, through thousands of direct and indirect new employment opportunities and by massively boosting Sri Lanka”s trade and commerce ecosystem,” he added.
DFC CEO Scott Nathan said, Sri Lanka is one of the world”s key transit hubs, with half of all container ships transiting through its waters.
“DFC”s commitment of $553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while at the same time strengthening the position of our allies across the region.” The US Ambassador to Sri Lanka Julie Chung said, the $553 million investment by DFC for the long-term development of the Port of Colombo”s West Container Terminal will facilitate private sector-led growth in Sri Lanka and attract crucial foreign exchange inflows during its economic recovery.
“Sri Lanka regaining its economic footing will further our shared vision for a free and prosperous Indo-Pacific,” she added.
John Keells Holdings chairperson Krishan Balendra said, DFC”s investment is an endorsement of the potential of the West Terminal project and a boost for investor confidence as Sri Lanka”s economy recovers.”
