ADB extends $270m assistance to SL

Saturday, 16 December 2017 00:44 - - {{hitsCtrl.values.hits}}

The Government has entered into three loan agreements worth $270 million with the Asian Development Bank (ADB) for the implementation of two projects: the Integrated Road Investment Program and the Jaffna Kilinochchi Water Supply Project.

A loan of $150 million was obtained for the investments required for the fourth tranche of the Integrated Road Investment Program and two loans worth of $120 million were obtained as additional financing for the investment required for the ongoing Jaffna Kilinochchi Water Supply Project.

The Integrated Road Investment Program 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 program is $906 million of which $800 million will be provided by ADB under the Multi-tranche Financing Facility (MFF) through six tranches. The Government contribution for the total program is US$ 106 million. The Government has already obtained loan assistance of $407 million from ADB under the first, second and third tranches.

The total investment cost of the proposed fourth tranche is $168 million. The Government will contribute $18 million and the balance $150 million will be obtained from 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.

In line with that, the overall impact of the Jaffna Killinochchi Water Supply Project is to improve health and human development in urban areas of the Jaffna Peninsula. Improvement of headwork at the Iranamadu water Tank, implementing water supply infrastructure and services in the Jaffna Peninsula and strengthening water resources management system are the main components of this project. The project will support restructuring of the current project by financing the cost overrun under the current project and supporting the additional activities of the desalination plant and related works under the component of improving water supply infrastructure and services in the Jaffna Peninsula and additional activates of the water resource management system component.

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.