Japan signs Rs. 45.5 b deal to finance new bridge over Kelani River

Saturday, 29 March 2014 00:26 - - {{hitsCtrl.values.hits}}

Japan yesterday committed Rs. 45.5 billion worth of concessionary financing to build a new bridge over the Kelani River. The signing of Exchange of Notes pertaining to the Yen loan package took place yesterday at the Ministry of Finance and Planning. Ambassador of Japan in Sri Lanka Nobuhito Hobo signed the Exchange of Notes on behalf of the Government of Japan while Ministry of Finance and Planning Secretary Dr. P.B. Jayasundera signed on behalf of the Government of Sri Lanka. The Loan Agreement was signed by Dr. Jayasundera and JICA Sri Lanka Office Chief Representative Kiyoshi Amada on behalf of the Government of Sri Lanka and JICA respectively. The Finance Ministry said the Development Policy Framework of the Government envisages a modern economic infrastructure system covering entire country. The strategic city development program of the Government identified by the ‘Mahinda Chinthana’ policy framework is now been implemented parallel to the development of road and expressway network of the country to suite a middle income economy. Under the above program all cities which are strategically important will be developed as planned cities recognising their uniqueness.

Plans are being already formulated to increase the accessibility to the express way network from the city of Colombo which controls the expected

traffic congestion at the existing Kelani Bridge due to transformation of Colombo city to a modern city along with successful completion of express way network. As the traffic volume in Colombo city has increased significantly during last few years, studies are now being undertaken to construct an elevated road network to divert the Colombo traffic to the expressway network in order to minimize the traffic congestion. In the meantime, Government plans to build a new bridge across the Kelani River, linking Colombo city and the Colombo Katunayake Expressway to mitigate and disperse the increased traffic congestion in the city areas. This will also expect to improve the accessibility to Colombo Port and the expressway network. For the purpose, the Government has decided to obtain assistance from the Government of Japan, a major development partner of Sri Lanka who has provided grant assistance since 1989 for construction of bridges as well as other infrastructure facilities in the country. As a result of bilateral discussions had with the Government of Japan, the Government of Japan agreed to provide a concessional loan amounting to Japanese Yen 35,020 million (approximately Rs. 45,526 million) through Japan International Cooperation Agency to construct the second new Kelani bridge.