ADB grants US$ 270 million loan to Sri Lanka for integrated road programme and water supply project
The Sri Lankan government has reportedly entered into three loan agreements worth US$ 270 million with the Asian Development Bank (ADB) for the implementation of two projects – the Integrated Road Investment Programme and the Jaffna Kilinochchi Water Supply Project.
According to reports, a loan of US$ 150 million was obtained for the investments required for the fourth tranche of the Integrated Road Investment Programme and two loans worth of US$ 120 million were obtained as additional financing for the investment required for the ongoing Jaffna Kilinochchi Water Supply Project.
The Integrated Road Investment Programme is being implemented in six provinces: the Southern, Central, Sabaragamuwa, North Western, and North Central Provinces and Kalutara District in the Western Province under the financial assistance of ADB since 2014 with the aim of building up better connectivity between rural communities and socio-economic centers. About 3108 km of rural access roads and about 248km of national roads will be improved and maintained under this program. In addition, the program is focused on enhancing the capacity of road agencies on road asset management, project management and contract administration.
The total investment cost of the overall programme is US$ 906 million of which US$ 800 million will be provided by ADB under the Multi-tranche Financing Facility (MFF) through six tranches. The government contribution for the total programme is US$ 106 million. The government has already obtained loan assistance of US$ 407 million from the ADB under the first, second and third tranches.
The total investment cost of the proposed fourth tranche is US$ 168 million. The government will contribute US$ 18 million and the balance US$ 150 million will be obtained from the ADB.
Safe drinking water is an essential prerequisite for better health and socio economic development in a country .The focus of the government to provide safe drinking water to the entire population of the country by 2020 of which 60 percent would be pipe borne water.
The total investment cost of the Jaffna Killinochchi Water Supply Project – Additional Financing will be US$ 153 million. The government will contribute US$ 33 million and the balance portion of US$ 120 million will be provided in two loans by ADB.
Secretary of the Ministry of Finance and Mass Media Dr. R H S Samaratunga signed the agreements on behalf of the Government of Sri Lanka and while Country Director of ADB Sri Lanka Resident Mission Sri Widowati placed her signature on behalf of ADB at the Ministry of Finance premises.
OSL take:
The granting of the loan of US$ 270 million to the Sri Lankan government for the implementation of the road and water projects indicate the availability of funding for the programme. It is an opportunity for interested investors to come forward to take part in the projects.
| Article Code : | VBS/AT/19122017/Z_1 |