ECONOMYNEXT – Sri Lanka’s John Keells Holdings will invest 70 million US dollars in 3.2 million twenty-foot equivalent container terminal in Colombo Port taking a 34 per cent stake, in a joint venture with India’s Adani group.
The 650 million dollar Colombo West International Container Terminal (Pvt) Ltd, will be 70/30 debt to equity funded, JKH said in a stock exchange filing.
India’s Adani will hold a 51 per cent stake and Sri Lanka Ports Authority the landlord will hold a 15 per cent stake.
“The debt funding for the project has been secured, subject to the closure of the related financing documents which will be completed prior to project commencement,” JKH said.
“The JKH equity commitment is estimated to be USD 70 million, which will be infused into CWIT on a staggered basis over the project construction period.”
The terminal is on a 35-year build own and transfer (BOT) concession.
The 1400 long quay will have an alongside depth of 20 metres. JKH said construction will begin in early 2022 and a 600-metre stretch will be finished in 24 months.
The balance would be completed in another 24 months. (Colombo/Sept30/2021)