India, SL sign MoU for development projects with grant assistance

Sri Lanka and India yesterday signed a Memorandum of Understanding (MoU) to implement High Impact Community Development Projects (HICDP) under Indian grant assistance.

The extension of the ongoing MoU on HICDP for another five years had been announced during the Virtual Bilateral Summit between Indian Prime Minister Narendra Modi and Prime Minister Mahinda Rajapaksa on 26 September. The MoU was signed today by High Commissioner of India Gopal Baglay and Treasury Secretary S.R. Attygalle.

Tuesday’s signing was in the presence of Premier Rajapaksa.

Under the HICDP a total of 64 projects, using a total outlay of approximately Rs. 20 billion as aid from the Government of India, have been implemented in Sri Lanka. As per the framework of the MoU for the third phase, signed today, individual developmental projects costing up to Rs. 300 million in social sectors such as health, education, water, sanitation, agriculture etc., can be taken up in Sri Lanka. The total outlay of all such projects at any given time can be up to Rs. 5 billion.

It had been also agreed during the Virtual Bilateral Summit to deepen and broad-base the HICDP projects currently undertaken in each of Sri Lanka’s 25 districts. These projects shall relate chiefly to socio-economic development, livelihood support, conservation of environmental and cultural heritage, empowerment of women, child welfare, and facilitation of community life, particularly through the creation of infrastructure in the education, health, agriculture or community development sectors. The Ministry of Finance is the nodal ministry for implementing the HICDP scheme on the Sri Lankan side.

Presently, 21 projects covering all provinces – Northern, North-Central, North-Western, Western, Southern, Central, Uva, Sabaragamuwa and Eastern – are being undertaken under the MoU. They include construction of primary schools and colleges, vocational training institutes, universities, hospitals, rural sanitation, cultural heritage, rainwater harvesting, social housing for the poor, agricultural warehousing, tourism and civil aviation infrastructure support.

The HICDP scheme has been designed to contribute to the developmental aspirations and needs of Sri Lanka. The projects undertaken are always demand-driven and entirely based on the requirements of the Government and the people of Sri Lanka. Further, all overheads and administrative costs for implementing these projects, as indeed any other projects under the Government of India’s grant, are absorbed separately by the Indian Government and are not included in the project outlay. The scheme is entirely on-budget and implemented through various line ministries of Sri Lanka, thereby indicating the depth of the development cooperation between the two countries. HICDP reflects the abiding commitment of India to work closely with the Government and people of Sri Lanka for shared progress and prosperity.

In a conversation with Prime Minister Rajapaksa, after the signing ceremony, High Commissioner Baglay conveyed his greetings to the Prime Minister on the upcoming festival of Deepawali and also referred to the Navaratri Puja celebrations held recently at Temple Trees.