Adani exits from $553 million US DFC funding for Sri Lankan port
Updated: Dec 11th, 2024
Adani Group has backed out from the $553 million loan deal with a Washington-based US firm Development Finance Corporation for Colombo West International Terminal (CWIT) project in Sri Lanka.
The Adani Ports and Special Economic Zones (APSEZ) Ltd on Tuesday said it will use its own resources to fund a Sri Lankan port project and not seek US funding.
In a stock exchange filing, Adani Ports said the project ‘is on track for commissioning by early next year’.
This comes after a US court alleging Adani Group’s Gautam Adani with fraud accusing him of paying $250 million in bribes to keep the US-based investors in the dark.
“The project will be financed through the company’s internal accruals and capital management plan. We have withdrawn our request for financing from the US Development Finance Corporation (DFC),” the Group said.
In November last year, the US International Development Finance Corp agreed to provide a $553 million loan to support the development, construction, and operation of CWIT at the Port of Colombo in Sri Lanka.
The CWIT is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA).
The CWIT project was started in September 2021, when Adani Ports signed an agreement with the Sri Lanka Ports Authority and Sri Lankan conglomerate John Keells Holdings, pledging over $700 million to expand the capabilities of Colombo Port.
(With inputs syndicated feed)
Also read:
Adani-owned port in Sri Lanka under scrutiny after bribery allegations by US court
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