Austrian Bank agrees to provide Euro 61 million to Sri Lanka to build water treatment plant and pipelines
The Finance Ministry of Sri Lanka has announced that UniCredit Bank of Austria has agreed to provide 61 million Euro (approximately Rs. 11,285 million) loan to build a water treatment plant and new pipelines in the country.
The Ministry has stated that a 3,500m3/day water treatment plant and other infrastructure will be built under the Kirama Katuwana Water Supply Project in the Colombo District.
The Ministry statement has observed that the project will supply drinking water to around 31,000 people living in Katuwana and Walasmulla Divisional Secretariat areas including semi urban communities in Kirama and Katuwana townships.
The Austrian Government through the UniCredit Bank of Austria will provide an interest free soft loan of 10.48 million Euro to finance the project, the statement notes.
Accordingly, an Export Credit Facility of 50.6 million Euro will be provided by UniCredit Bank to the National Water Supply and Drainage Board (NWSDB) to finance 85% of a project for new pipelines.
The project is under the Augmentation of Water Pipelines along with the Orugodawatta-Ambatale Road Development Project.
People’s Bank of Sri Lanka has agreed to provide the balance 15% of the project cost (approximately Rs. 1,410 million).
OSL take:
The announcement by Sri Lanka’s Finance Ministry about the securing of a Euro loan for a water treatment plant and pipelines project indicates an opportunity for companies involved in the area of water management to present the government of Sri Lanka with the latest technologies currently available in the relevant sector. Investors could also look at similar projects covering other districts in the country.
| Article Code : | VBS/AT/20180312/Z_2 |