India’s Adani Ports cancels Myanmar container terminal plans | Whuff News

CHENNAI, Oct 27 (Reuters) – India’s Adani Ports ( APSE.NS ) said on Wednesday it was abandoning plans to build a container terminal in Myanmar, weeks after applying for a US license for the project, saying it believed it did not violate sanctions. .

A military coup in Myanmar in February and a subsequent crackdown on mass protests that left hundreds dead have drawn international condemnation and sanctions on military figures and military-controlled entities.

“The company’s risk management committee, after reviewing the situation, has decided to work on plans to exit the company’s investment in Myanmar, including exploring any disposal opportunities,” Adani said in a statement, without giving further reasons for the change in plans.

The company is expected to fully exit investments in the strife-torn south Asian country between March and June next year, he said.

The port operator said in August it had asked the US Office of Foreign Assets Control (OFAC) for a license to operate the Myanmar container terminal.

Adani said in May it would abandon the Myanmar container terminal project and write off the investment if it was found to be in violation of US sanctions.

The company has invested $127 million, including a $90 million down payment for land leases, he said in May, adding that the devaluation would not have a material impact because the project only accounts for about 1.3% of the company’s total assets.

Adani last year won the bid to build and operate the Yangon International Terminal, said to be an independent project wholly owned and developed by the company.

A March report released by two rights groups cited documents it said showed that Adani units would pay up to $30 million in land lease payments for the project to the Myanmar Economic Corporation (MEC), one of two military-controlled conglomerates under US sanctions.

Adani did not comment on the lease payments detailed in the report at the time, but later said it had a “zero-tolerance policy on sanctions.” read again

Editing by Vinay Dwivedi and Mark Potter

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