ADB extends $ 3.5 m loan for rural electrification

Saturday, 5 May 2012 03:03 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

The Asian Development Bank (ADB) will extend a US$ 3.5 million loan to Sri Lanka for rural household electrification, a minister said yesterday.

Acting Cabinet spokesman Minister Lakshman Yapa Abeyawardana told media that the loan will assist households in the south as well was the former war torn eastern provinces to obtain electricity at low cost.

“The proposed Rural Household Connection Project intends to improve operational and financial efficiency in rural electrification in the country and to expand coverage of rural electrification,” he said.

The Cabinet also appointed local development bank Sanasa to provide microfinance to the households interested in connecting to the grid.

Abeyawardana added that Sri Lanka’s last large scale hydro-power project would be completed soon and President Mahinda Rajapaksa will undertake an observation tour on Saturday.

Sri Lanka hopes to reach 100% electrification by the end of this year despite massive costs in infrastructure and power generation.