By: Staff Writer
December 11, Colombo (LNW): Billionaire Gautam Adani-led conglomerate announced it will use its own resources to fund a Sri Lankan port project and not seek US funding.
The Indiajn Company said it has withdrawn a funding request from the US International Development Corporation for its Colombo West International Terminal (CWIT) project in Sri Lanka.
In an India’s Bombay Stock Exchange filing late on Tuesday10, Adani Ports and SEZ Ltd disclosed the project “is on track for commissioning by early next year” and added that the company will fund the ongoing project through “internal accruals”, aligning with its capital management strategy.
The company said it has withdrawn its 2023 “request for financing from the US International Development Finance Corporation (DFC)”.
The US International Development Finance Corp, in November last year, agreed to provide a USD 553 million loan to support the development, construction, and operation of a deep-water container terminal called the Colombo West International Terminal (CWIT) at the Port of Colombo in Sri Lanka.
After charges were filed in the US including against Adani officials for misleading US investors about 250 million dollars in alleged bribery in a renewable energy project, the DFC said it was still conducting due diligence.Adani group had denied the allegations
The company, however, said the Colombo West International Terminal project is progressing well and is on track for commissioning by early 2025.
Adani Group, controlled by Indian billionaire Gautam Adani, holds a 51% stake in the west container terminal of the port, which also has a terminal run by China Merchants Port Holdings Co Ltd.
Sri Lankan conglomerate John Keells Holdings owns 34% of the terminal and the rest is held by the state-run Sri Lanka Ports Authority.
Last month, US authorities accused Adani Group Chairman Gautam Adani and seven others of being part of a $265 million scheme to bribe Indian officials, and of misleading US investors while raising funds there.
The company, however, said the Colombo West International Terminal project is progressing well and is on track for commissioning by early 2025.
The Adani Group and John Keells Holdings (JKH) have announced that their joint venture terminal at Colombo Port in Sri Lanka is expected to become operational by the first quarter of the 2025 calendar year. This new terminal, known as the West Container Terminal (WCT), is one of the largest projects.
