Adani Ports and Special Economic Zone Vizhinjam International Seaport PPP

Overview:

• The Kerala government has accepted private multi-port operator Adani Ports and Special Economic Zone's (APSEZ) bid to build the Vizhinjam International multi-purpose seaport.
• APSEZ is India's largest private port operating firm. The first phase of this project was expected to cost Re7,525 crore ($1.17 billion), and Adani Group will invest Re2,454 crore ($382 million) and has sought Rs1,635 crore ($255 million) from state and central government. 
• This is the first PPP port project which received the viability gap funding from the government of India and the government of Kerala.
• It is the first time the concession authority has guaranteed the termination payments to the lenders by offering encumbrance on the project site in favour of the creditors of this project.
• Vizhinjam will be APSEZ's ninth port facility. This port will be outside the control of the union government and will therefore be free to set its own rates. 

Wai Yee Tsang - Journalist Asia-Pacific