ECT deal with Adani Group
View(s):India’s Adani Ports and Special Economic Zone Ltd has been offered a 39 per cent stake in the East Container Terminal (ECT) while its local partner would have a 13 per cent stake, together making it 49 per cent in the ECT investment, according to details now emerging on the proposed ECT deal with the Indian company. The balance 51 per cent will be retained by the Sri Lanka Ports Authority (SLPA).
Adani’s stake will be under a build–own–operate–transfer (BOOT) a form of project delivery method (BOOT) which has been proposed by the Indian government authorities.
Trade unions are opposing the provision of a 49 per cent stake to the Indian company while the government has already make its position clear that the Indian company would be invited to invest in the ECT.
According to highly-placed officials involved in the process, India will provide Sri Lanka with a currency swap of US$1 billion while another $500 million will come in as Adani’s investment in the ECT. The Adani funds will be channeled to the Treasury which will use the total ($1.5 billion) partly for boosting Sri Lanka’s foreign reserves and $500 million to be loaned to the SLPA for the ECT work.