Fresh support from ADB, JICA and WFP

By Uditha Jayasinghe

Three international agencies are giving the Government assistance totalling around US$ 130 million, which was approved by the Cabinet this week.

On a proposal made by the President, loan negotiations are to be held with the Asian Development Bank on 3 and 4 August 2011 to obtain financial assistance amounting to US$ 59 million (approximately Rs. 6.5 billion) to improve the local government infrastructure and service delivery through implementation of the ‘Pura Neguma – Local Government Enhancement Project’.

The total investment for the project is US$ 68.77 million, which includes a loan of US$ 59 million from the Asian Development Fund and Government contribution of US$ 9.77 million.

The project will provide capital grants to selected local authorities for eligible sub-projects such as, water supply and sanitation, drainage, solid waste management, roads and bridges, improvement of maternity and health care centres, public markets, etc.

Cabinet approval was granted to enter into a loan agreement with the Asian Development Bank for a sum of US$ 59 million for the above project.

The Government of Japan has agreed to provide grant assistance for a sum of Japanese Yen 1,206 million (approximately Rs. 1,640 million) for the construction of Manmunai Bridge and Causeway across the Batticaloa Lagoon.

This will reduce the distance between the east and west banks of the lagoon from 32 km to 300 m and the distance from Manmunai West Bank to Batticaloa from 27 km to 15 km.

The proposal by the President to sign the Exchange of Notes with the Government of Japan to obtain the grant of Japanese Yen 1,206 million and to enter into a grant agreement for the purpose with the Japan International Cooperation Agency (JICA) was approved by the Cabinet.

Meanwhile, the World Food Programme has agreed to provide food aid assistance under protracted Relief and Recovery Operation (PRRO) and Emergency Operation (EMOP) to Sri Lanka and Letters of Understanding are to be signed for the programmes between the Government and the WFP.

The objectives of the programmes are to support the Government in its efforts to provide relief to the affected people and for rehabilitation activities.

The two programmes will focus on mother-child health nutrition, food for education for all primary students in selected schools, food for work programmes and food distribution for the displaced people in camps.

The PRRO programme will be implemented in Mannar, Vavuniya, Mullaitivu, Kilinochchi and Jaffna Districts in the Northern Province and selected areas in the Eastern Province and the estimated number of beneficiaries would be 371,000.

The EMOP programme will be implemented in selected Divisional Secretariat Divisions in Ampara, Batticaloa and Trincomalee Districts in the Eastern Province and Anuradhapura and Polonnaruwa Districts in the NCP covering 500,000 beneficiaries.

The proposal made by the President to sign the Letters of Understanding with the WFP for a sum of US$ 39,755,501 and US$ 8,869,131 to implement the WFP Food Aid Programmes in Sri Lanka, was approved by the Cabinet.