Vizhinjam International Seaport

ControversiesVizhinjam International Seaport is a port under construction by the Arabian Sea at Trivandrum in India. The total project expenditure is pegged at 6595 crores over three phases and is proposed to follow the landlord port model with a view to catering to passenger, container and other clean cargo.Vizhinjam International Seaport Limited (VISL) is a special purpose government company (fully owned by Government of Kerala) that would act as an implementing agency for the development of a greenfield port - Vizhinjam International Deepwater Multi purpose Seaport- at Vizhinjam in Thiruvananthapuram, capital city of Kerala.Project HistoryThe Vizhinjam Port was originally conceived about 25 years ago. The initial project model was suggested as the Public Private Partnership (PPP)- Private Services model. Two rounds of bidding and tenders called under the PPP model ended up as a failure as a result of various reasons including the inherent un-viability of the project's economic rationale. The first round was granted to a Chinese company that failed to secure the security clearance from the Center, the second round which was first awarded to Lanco Group and then challenged in the Kerala High Court by Zoom Developers led to the eventual withdrawal by Lanco Group. The Kerala cabinet on June 10, 2015, decided to award the multi-thousand crore Vizhinjam international port and deep-water container transshipment terminal to Adani Ports and SEZ, the sole bidder.The International Finance Corporation (IFC), a member of the World Bank Group is currently the transaction advisor to VISL. The IFC was appointed in November 2009 as the lead advisor to the Vizhinjam Port. The IFC undertook in 2009 - 2010 a series of studies and reports that recommended the State to undertake the project under the Landlord Model. The Landlord model would see the State make the final investment of over 1 Billion USD to build the port. As opposed to the PPP model where the Private Partner would bear the cost of the port. The IFC has also undertaken the task of conducting the Environmental Impact Assessment Study of the Container Port.