No money given to Adani so far for Sri Lankan port project, says US development agency
MUMBAI ; The US International Development Finance Corporation (DFC), which last year committed a half-a-billion-dollar loan to the Adani Group for developing a port in Sri Lanka, has not yet disbursed any money to the Indian conglomerate.
“The project has not reached financial close or signed a loan agreement,” a DFC official said in response to Mint’s queries. “We continue to conduct due diligence to ensure that all aspects of the project meet our rigorous standards before any loan disbursements are made,” the official said over email.
The US DFC last year committed a $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. The CWIT is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc., and the Sri Lanka Ports Authority.
The geopolitically sensitive port project in Sri Lanka is as much of a move by the US to counter Chinese influence in the island nation as it is to help the local economy flourish.
A spokesperson for the Adani group said the Sri Lanka CWIT project was progressing as planned. “Phase 1 of the project is on schedule and is nearing completion. It will become commercially operational by Q1 2025,” the spokesperson said, requesting not to be named.
Incidentally, GQG Partners informed its investors last week that it had built up positions in Adani group companies as new data emerged, including the DFC’s commitment to invest in the Sri Lankan port project with Adani Ports and SEZ Ltd in November 2023.
US-based GQG Partners is one of the largest backers of the Adani group with an exposure of over $8 billion to seven listed Adani firms.
“We perceived this as a positive comment on, if not an endorsement of, the (Adani) group. We find it very surprising that the US government would approve funding and partner in projects with parties that were under DOJ investigation,” GQG said in the note to its investors. The investment firm did not respond to Mint’s queries sent on Monday.