ADB extends $ 60 million to revive stalled iRoad programmed projects
Daily FT: The Government has decided to borrow $ 60 million from the Asian Development Bank (ADB) under its Integrated Road Investment Program (iRoad Programmed) which faced suspension due to a shortage of funds amid the economic crisis.
The Finance Ministry in a statement noted that the relevant loan agreement for the second Integrated Road Investment Program (4th tranche) was signed recently by Finance, Economic Stabilization and National Policies Ministry Secretary K.M. Mahinda Siriwardana and ADB Country Director Takafumi Kadono on behalf of the Government of Sri Lanka and ADB respectively.
“The funds will be used for carrying out the critical works of the already commenced and incomplete road sections of the overall Integrated Road Investment Program to improve road safety and minimize public inconvenience,” the statement added.
The loan of $ 60 million will be provided from ADB’s Concessional Ordinary Capital Resources.
The total investment cost of the fourth tranche is estimated at $ 68.5 million, out of which $ 8.5 million has been agreed to be borne by the Government.
Separately, the Cabinet of Ministers recently has approved borrowing $ 60 million from the ADB under the iRoad programmed to overcome financial hurdles and push forward with essential road improvements.
“Following the deliberations, the ADB has committed to providing a lifeline to these stalled projects by offering a substantial loan amounting to $ 60 million. The aim is to ensure the timely completion of crucial components within the affected projects this year,” Cabinet Co-Spokesman and Road Development Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing recently.
OSL take:
With Sri Lanka’s economic activities kick starting once again after facing a period of challenging economic conditions since 2019, the country’s development programmed is once again back on track with foreign funding coming in for infrastructure development projects. Sri Lanka’s development programmed has therefore presented a host of new business/investment opportunities. These opportunities are to see a further expansion with Sri Lanka working towards becoming an emerging business destination in the South Asian region. Given Sri Lanka’s overall economic activities, the government of Sri Lanka is focused on the development of infrastructure related to key economic sectors as well as the development of supplementary infrastructure facilities required by these expanding sectors. Given the growth and business potential of Sri Lanka, foreign businesses/investors could explore the expanding opportunities in the country, especially in the country’s development programmed.
| Article Code : | VBS/AT/20231201/Z_6 |