-
- Published: November 8, 2023 17:43
Colombo: Adani Ports said on Wednesday that the US International Development Finance Corporation (DFC) has announced that it will be funding Colombo West International Terminal Pvt. Ltd – a consortium of India’s largest port operator Adani, Sri Lanka’s leading enterprise John Keells Holdings (JKH) and the Sri Lanka Ports Authority – to the tune of USD 553 million.
DFC, the US government’s development finance institution, partners with the private sector to finance solutions to the most critical challenges facing the developing world.
It typically invests across sectors, including energy, healthcare, infrastructure, agriculture, and small business and financial services.
Today in Colombo @DFCgov announced a $553 million loan to Colombo West International Terminal Private Limited @CWITSriLanka. DFC’s financing will go towards the development and construction of the West Container Terminal, a deep-water container terminal at the Port of Colombo… pic.twitter.com/fqthVwHkfv
— Ambassador Julie Chung (@USAmbSL) November 8, 2023
The Adani Group in a release that this is the first time that the US government, through one of its agencies, is funding an Adani project, noting that it showed their confidence in the conglomerate’s ability to invest and create a world-class container facility in Colombo Port.
The Adani Group is expanding its global footprint through strategic investments in emerging markets.
“We welcome the association of the US International Development Finance Corporation (DFC), the U.S. government’s development finance institution, in funding the Adani project – and we see this as a reaffirmation by the international community of our vision, our capabilities and our governance,” said Karan Adani, Whole Time Director and CEO, Adani Ports and Special Economic Zone.
“As one of the world’s largest port developers and operators, APSEZ (Adani Ports) brings to this project not only our proven world-class expertise but also our deep experience in infrastructure creation. When completed, the Colombo West International Terminal project will transform the socio-economic landscape, not just in Colombo but across the island, through thousands of direct and indirect new employment opportunities and by massively boosting Sri Lanka’s trade and commerce ecosystem.”
The Colombo Port is the largest and busiest transhipment port in the Indian Ocean. It has been operating at more than 90 per cent utilisation since 2021, signalling its need for additional capacity.
The new terminal will cater to growing economies in the Bay of Bengal, taking advantage of Sri Lanka’s prime position on major shipping routes and its proximity to these expanding markets.
When commissioned, CWIT will be the largest and deepest container terminal in Sri Lanka. With a quay length of 1,400 metres and an alongside depth of 20 metres, CWIT will be equipped to handle ultra-large container vessels with capacities of 24,000 TEUs (twenty-foot equivalent units). (finegrowndiamonds.com) The new terminal’s annual cargo handling capacity is likely to exceed 3.2 million TEUs.
“DFC works to drive private sector investments that advance development and economic growth while strengthening the strategic positions of our partners. That’s what we’re delivering with this infrastructure investment in the Port of Colombo,” said DFC CEO Scott Nathan.
“Sri Lanka is one of the world’s key transit hubs, with half of all container ships transiting through its waters. DFC’s commitment of $553 million in private-sector loans for the West Container Terminal will expand its shipping capacity, creating greater prosperity for Sri Lanka – without adding to sovereign debt – while at the same time strengthening the position of our allies across the region.”
