NORTHWEST India's Mundra-based Adani Ports said it is abandoning plans to build a container terminal in Myanmar (Burma), after criticism from human rights organisations, reports London's Container Management.
Scrutiny on investments in Myanmar has heightened since February when a military coup overthrew the democratically elected government.
In August, Adani Ports and Special Economic Zone (APSEZ), in Mundra. 450 nautical miles up the coast from Mumbai, asked the US Office of Foreign Assets Control (OFAC) for a licence to operate Yangon (Rangoon) International Terminal, after winning a bid last year to build and operate the facility.
OFAC has previously sanctioned the military-affiliated Myanmar Economic Corporation (MEC), which APSEZ had paid US$30 million to in land lease fees according to leaked documents obtained by activist groups.
In a statement, APSEZ noted: 'The company's risk management committee, after a review of the situation, has decided to exit Myanmar.'
Adani expects to fully exit the investment between March and June next year. This port is being built on land owned by the armed forces (Tatmadaw), which has been leased from MEC for a period of 50 years.
Adani had committed to investing US$290 million in the project, in addition to an annual payment to MEC to lease the site.
In June, Norwegian pension fund KLP has divested from APSEZ, stating that the port operator's business partnership with Myanmar's armed forces risks breaching its 'responsible investment' guidelines.
The container terminal's capacity was expected to reach 800,000 TEU, with a first phase offering of 500,000 TEU, according to Container Management.
SeaNews Turkey
Scrutiny on investments in Myanmar has heightened since February when a military coup overthrew the democratically elected government.
In August, Adani Ports and Special Economic Zone (APSEZ), in Mundra. 450 nautical miles up the coast from Mumbai, asked the US Office of Foreign Assets Control (OFAC) for a licence to operate Yangon (Rangoon) International Terminal, after winning a bid last year to build and operate the facility.
OFAC has previously sanctioned the military-affiliated Myanmar Economic Corporation (MEC), which APSEZ had paid US$30 million to in land lease fees according to leaked documents obtained by activist groups.
In a statement, APSEZ noted: 'The company's risk management committee, after a review of the situation, has decided to exit Myanmar.'
Adani expects to fully exit the investment between March and June next year. This port is being built on land owned by the armed forces (Tatmadaw), which has been leased from MEC for a period of 50 years.
Adani had committed to investing US$290 million in the project, in addition to an annual payment to MEC to lease the site.
In June, Norwegian pension fund KLP has divested from APSEZ, stating that the port operator's business partnership with Myanmar's armed forces risks breaching its 'responsible investment' guidelines.
The container terminal's capacity was expected to reach 800,000 TEU, with a first phase offering of 500,000 TEU, according to Container Management.
SeaNews Turkey
