Adani Ports backed out of $533 million US funding for its Colombo Project.
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Summary: Adani Ports has decided to use internal funds instead of seeking $553 million in US funding for Sri Lanka's Colombo West International Terminal (CWIT) project.
Adani Ports and Special Economic Zone Ltd. informed the exchanges, that it will no longer use US funding for the Colombo West International Terminal project in Sri Lanka. They will instead use the internal funds to finance the Sri Lanka port system.
According to the corporation, their "request for financing from the US International Development Finance Corporation (DFC)" for 2023 has been withdrawn. Also, the Colombo project is on track and will be completed by the upcoming year.
The decision was taken after the Sri Lanka Ports Authority (SLPA) confirmed its commitment to Adani Ports' Colombo West International Terminal project. Admiral Sirimewan Ranasinghe (Retd), Chairman of the SLPA, stated that there are no urgent intentions to review or terminate the agreement.
In November of last year, the US International Development Finance Corp agreed to grant a USD 553 million loan to fund the development, construction, and operation of the Colombo West International Terminal (CWIT), a deep-water container terminal at Sri Lanka's Port of Colombo.
Since 2021, the Port of Colombo will be the biggest transshipment center in the Indian Ocean—has run at more than 90% capacity. The Colombo West International Terminal (CWIT) project was started in September 2021 to meet this demand. The port will be the biggest and deepest container facility in Sri Lanka thanks to Adani Ports' approximately $700 million investment, which was made in partnership with the Sri Lanka Ports Authority (SLPA) and John Keells Holdings.
Recently, the US government declared that it was "actively assessing the ramifications" of the bribery charges against the executives of the Adani business. It hasn't provided the ports-to-energy conglomerate any money yet.
The Adani Group dismissed any charges as baseless and promised to take all appropriate legal action.
