JICA to lend $ 1.7 b for light rail transport project

Saturday, 30 June 2018 01:04 - - {{hitsCtrl.values.hits}}

Entire project cost will be covered by amount
Says loan will be given at an interest rate of 0.1%
Considering three more parallel projects to be implemented by first half of next year

Megapolis and Western Development Minister Patali Champika Ranawaka

By Rahel Kirinde

Megapolis and Western Development Minister Patali Champika Ranawaka yesterday said that the Japanese International Cooperation Agency (JICA) will be loaning out $ 1.7 billion to fund the proposed light rail transport (LRT) project from Malabe IT Park to Pettah.

The Minister was speaking at his Ministry after officially being presented with the feasibility study report of the project by JICA Sri Lanka Chief Representative Fusato Tanaka.

“We are grateful to the Japanese Government for giving us a loan of $ 1.7 billion to initiate this project. This will be the next best experience in the transport sector since the introduction of the railway service to the country in 1860,” said Ranawaka.

He revealed that plans are being made to establish three more similar LRT systems parallel to this project in the form of a public-private partnership (PPP), and that it would commence within the first half of next year.

The Minister further clarified that this project would not worsen the country’s debt situation. “For a project to be successful, a proper feasibility analysis, environmental analysis, societal analysis and, especially, a financial analysis are crucial. Due to improper financial comprehension and analysis of projects we did in the past, the country got caught in a debt trap,” Ranawaka asserted.

He further said that the feasibility study clarifies that this project is not one that will add to the debt of the country, but one that will uplift the local economy.

On a different note, the Minister and JICA Chief also launched the official website of the project.

Acquiring of land related to the commencement of the project has already begun. The strategy is to conclude the comprehensive plan within 2019, begin construction during 2020, and enable public access by 2024.

The project will cover a distance of 21 km with a total travel time from Malabe to Pettah of around 40 minutes.