ADB extends $ 60 m to revive stalled iRoad program projects

The Government has decided to borrow $ 60 million from the Asian Development Bank (ADB) under its Integrated Road Investment Program (iRoad Program) 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 yesterday by Finance, Economic Stabilisation 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 minimise 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 on Monday has approved borrowing $ 60 million from the ADB under the iRoad Program 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 yesterday.