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WCT at Colombo Port: Delay in inking SLPA-Adani deal   

28 Aug 2021

  • Govt. confirms finalising agreement  
  • Signing and construction soon: Ports Min. Secy 
 BY Maheesha Mudugamuwa  Even though it has been five months since the Government of Sri Lanka issued the letter of intent (LOI) to India-based Adani Ports and Special Economic Zone Ltd. (APSEZ), an Adani Group firm, to develop and operate the West Container Terminal (WCT) at the Colombo Port, the two parties are yet to sign the formal agreement, The Sunday Morning learnt.  According to Ports and Shipping Ministry Secretary U.D.C. Jayalal, there is no official date fixed as of yet, to sign the agreement between the Sri Lanka Ports Authority (SLPA) and Adani.   However, he said that the agreement would be signed soon. “We are finalising the agreement. It will be signed soon,” Jayalal added.  Once the agreement is signed, the construction would begin, he further added.     The WCT will be developed on a build, operate, and transfer (BOT) basis for a period of 35 years, as a public-private partnership (PPP). It will have a quay length of 1,400 m and a depth of 20 m, thereby making it a prime transhipment cargo destination to handle ultra large container carriers.  Accordingly, the APSEZ will partner with Sri Lanka’s John Keells Holdings PLC conglomerate and the SLPA as a part of the consortium.  In June, news reports circulated claiming that the Adani Group was facing a financial crisis.   However, the Ministry said that the Adani Group had given the required financial statements to show the company's stability during the recent negotiations, and that they had, therefore, not been informed of any financial crises as of yet.  Adani was to develop the Colombo Port's East Container Terminal (ECT) and a memorandum of co-operation (MoC) was also signed. But later, the Government had to change its stance due to severe pressure mounted by ports unions.


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