By: Staff Writer
December 05, Colombo (LNW): The US International Development Finance Corporation (DFC), which pledged a $553 million loan last year to the Adani Group for developing a port in Sri Lanka, has yet to release any funds.
“The project has not reached financial close or signed a loan agreement,” a DFC official stated, responding to inquiries. “We continue to conduct due diligence to ensure all aspects of the project meet our rigorous standards before any disbursements are made,” the official added via email.
The loan was intended to support the Colombo West International Terminal (CWIT), a deep-water container terminal at Colombo Port. The terminal is being developed by a consortium that includes Adani Ports, Sri Lanka’s John Keells Holdings Plc., and the Sri Lanka Ports Authority.
The project, seen as a strategic move by the US to counter Chinese influence in Sri Lanka while boosting the local economy, is progressing according to the Adani Group.
“Phase 1 is on schedule and nearing completion, with commercial operations expected by Q1 2025,” an Adani spokesperson confirmed.
Meanwhile, GQG Partners, a major US-based investor in the Adani Group with over $8 billion in holdings across seven Adani companies, cited DFC’s loan commitment as a positive signal for the group.
The announcement follows allegations by US authorities against Adani Group founder Gautam Adani and others, accusing them of paying $250 million in bribes to secure Indian solar power contracts.
Despite the charges, Adani Ports, a key entity in the Sri Lankan project, has not been implicated. The DFC refrained from commenting on whether it would withdraw from the project or seek a new partner but emphasized its commitment to ensuring integrity and compliance in its ventures.
The strategically important port project in Sri Lanka serves as both an effort by the United States to counter China’s growing influence in the region and a means to boost the local economy.
According to a spokesperson for the Adani Group, the Colombo West International Terminal (CWIT) project is progressing as planned, with Phase 1 nearing completion and expected to be operational by the first quarter of 2025. The spokesperson requested anonymity.
Last week, GQG Partners informed its investors that it had increased its stakes in Adani Group companies following new developments, including the U.S. International Development Finance Corporation’s (DFC) decision to invest in the Sri Lankan port project alongside Adani Ports and SEZ Ltd in November 2023.
GQG Partners, a U.S.-based investment firm, is a major supporter of the Adani Group, with over $8 billion invested in seven of its listed companies.
In a note to investors, GQG viewed this development as a positive signal, if not an endorsement, of the Adani Group. However, it expressed surprise that the U.S. government approved funding and collaboration on projects involving entities under investigation by the Department of Justice (DOJ).
Last week, U.S. authorities indicted Adani Group founder Gautam Adani, his nephew Sagar Adani, and Adani Green Energy’s managing director Vneet Jaain for allegedly paying $250 million in bribes to Indian officials to secure solar power contracts.
The DFC has not clarified whether it will proceed with the project, withdraw, or seek a new partner. However, it emphasized that Adani Ports has not been implicated in the charges brought by U.S. prosecutors.
A DFC official stated, “We remain committed to ensuring our projects and partners adhere to the highest standards of integrity and compliance.”
