Adani Ports Withdraws Financing Request From US DFC For CWIT Project

On December 11, 2024, Adani Ports and Special Economic Zone Ltd (APSEZ) through an exchange filing announced that it has decided to withdraw its earlier request for financing from the US International Development Finance Corporation (DFC) for the Colombo West International Terminal (CWIT) project in Sri Lanka.

The company further added that the CWIT project will now be financed via Adani Ports’ internal accruals and capital management plan. Adani Ports confirmed that the request for financing from the DFC had been retracted, with the project to be fully funded through its own resources.

Adani Ports also stated that the CWIT project is progressing as planned, with commissioning expected by early next year. The company emphasised that the project’s development is on track despite the withdrawal of external financing.

Legal Developments Impacting the Adani Group

This decision comes amidst recent legal challenges faced by the Adani Group. The US Department of Justice has charged Adani Group Founder and Chairman Gautam Adani, along with 7 others, over an alleged conspiracy to pay $265 million in bribes to Indian officials. These bribes were purportedly intended to secure solar power contracts that could yield $2 billion in profits over 20 years. The Adani Group has denied these charges, calling them baseless and pledging to pursue all possible legal recourse.

Initial DFC Loan Agreement

In November of the previous year, the US International Development Finance Corporation (DFC) agreed to provide a $553 million loan to support the CWIT project’s development, construction, and operation. The project was intended to develop a deep-water container terminal at the Port of Colombo in Sri Lanka.

The CWIT project is being developed by a consortium consisting of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA). The DFC financing was part of the US government’s broader efforts to counter China’s growing influence in the region, and it was seen as an endorsement of Adani’s capability to develop world-class infrastructure.

However, the loan process stalled after the DFC requested amendments to the agreement between Adani and SLPA to align with their conditions. This amendment was then reviewed by Sri Lanka’s attorney general. As the project nears completion, Adani Ports, which holds a 51% stake in the venture, has chosen to move forward without the DFC funding.

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