US Agency Still Reviewing Funding Adani’s Sri Lanka Project
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A US agency that agreed to lend more than $500 million to an Adani Group-backed port development in Sri Lanka said it’s still conducting due diligence on the project, following bribery allegations against the conglomerate’s billionaire founder and other top executives.
The US International Development Finance Corp., or DFC, hasn’t reached a final agreement on the loan, an official said in an emailed response to questions.
“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. “The project has not reached financial close or signed a loan agreement.”
An Adani Group representative didn’t immediately respond to requests for information.
The DFC announced last year that it would help finance the port terminal in Sri Lanka’s capital that’s being developed by Adani Ports and Special Economic Zone Ltd. It would’ve been the US agency’s largest infrastructure investment in Asia and was meant to boost America’s presence in the region to counter China’s dominance.
The project also involves two local partners: Sri Lankan conglomerate John Keells Holdings Plc and the Sri Lanka Ports Authority.
US prosecutors indicted Gautam Adani and other defendants last week on charges of helping drive a more than $250 million bribery scheme to win Indian solar energy contracts, and concealing the scheme from US investors from whom they sought to raise money. The company has denied the allegations and said it’s seeking legal recourse.
The DFC official said the bribery allegations don’t implicate the Adani subsidiary involved in the Sri Lanka project.
“We are committed to ensuring that our projects and partners uphold the highest standards of integrity and compliance,” the official said.
Separately, Sri Lanka is reviewing the Adani Group’s planned wind power projects in the country, with the cabinet expected to discuss the proposal in coming weeks, The Sunday Morning reported, citing a spokesman for the Ceylon Electricity Board. The government is currently evaluating all aspects of the project, including its financial feasibility and environmental impact, the spokesman told the newspaper.
--With assistance from P R Sanjai.
(Adds Adani response in fourth paragraph, other project partners in sixth paragraph)
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