Kuwait lends Sri Lanka $ 34 m to uplift Eastern University

The Kuwait Fund for Arab Economic Development (KFAED) signed a loan agreement with Sri Lanka on Thursday for KD10 million (approx. $34 million) to contribute to financing construction of a complex for the Faculty of Healthcare Sciences, Eastern University.

Secretary to the Ministry of Finance, Dr. R.H.S. Samaratunga signed the loan agreement on behalf Sri Lanka. Deputy Director-General of the KFAED, Hesham Al-Waqayan in the presence of the Ambassador of Kuwait to Sri Lanka, Khalaf Bu Dhhair, and the Regional Manager for East South Asian and Pacific Countries of Kuwait Fund, Waleed Al-Bahar, signed on behalf of the Fund.

The proposed project aims in general to improve the social and economic level of the population of Eastern Sri Lanka, leading to support social and economic development in the country as a whole, the KFAED said in a statement.

Through construction of the new Faculty of Health Care Sciences at the Eastern University in Batticaloa City, the fund will also provide adequate opportunity for those wishing to enroll in the Faculty of Healthcare Sciences, which in turn will provide healthcare in the community.

The project includes construction and equipment of the main building, various service structures, internal feeder roads, supply of furniture, research, medical and technical equipment and internet services. It also includes consultancy services for detailed designs, tender documents and supervision of construction. The project is expected to be completed by the end of 2019.

The total cost of the project including prices, taxes and interest reserves during implementation, is estimated at Rs. 7.1 billion. The Fund covers 69% of the total project costs while the Government of Sri Lanka has pledged to cover the remaining costs.

The 25-year loan, at an interest rate of 1% plus 0.5% per annum to meet the costs of administration and implementation of the Loan Agreement, will have a grace period of 5 years and is repayable in 40 semi-annual installments.

KAFED has previously extended 13 loans to Sri Lanka, totaling about KD 62.66 million ($ 213 million). The fund has also extended technical assistance to Sri Lanka, valued at KD 455, 000 ($ 1.52 million), to finance technical and economic feasibility studies for projects in the agricultural and energy sectors.