ADB approves US$ 98 m for northern roads

Tuesday, 18 September 2012 01:20 - - {{hitsCtrl.values.hits}}

Aims to reduce travel time by 20 per cent; project to benefit an estimated 1.8 m people in five districts

The Asian Development Bank (ADB) has approved US$ 98 million in loans for infrastructure development in Sri Lanka’s former northern war zone that will bring benefits to an estimated 1.8 million people, the organisation said in a statement on Monday.

ADB’s Board of Directors has approved financing of $ 98 million to rehabilitate an additional 230 kilometres of national and provincial roads in Northern Province and North Central Province.

The upgrades come on top of the earlier restoration of more than 300 kilometres of roads in the two provinces, which were badly affected by three decades of conflict and neglect. Around 1.86 million people living in five districts are expected to benefit from the overall expanded project.

“The additional road upgrades will give distant communities easier access to services, including schools, health clinics, and markets,” said Chen Chen, Transport Specialist in ADB’s South Asia Department. “Faster connectivity to the south, including the capital Colombo, will cut travel costs and open up new economic and employment opportunities.”

The end of the civil conflict in 2009 has coincided with a sharp economic rebound in the north, with 2010 growth at nearly 23% in Northern Province and more than 20% in North Central Province.

However, the two regions, which each have about 6% of the total population, contribute only a small share of the country’s total gross domestic product and many remote communities are still missing out on the benefits of the economic expansion. Improvements to northern infrastructure are a key part of the government’s national strategy for inclusive growth.

The project goal is to reduce travel time on project roads in the two provinces by an average of 20% from the 2010 level. Reducing long travel times spent on family tasks will free women up to pursue more productive income-earning activities The project will also tap local labour for road works, including a target of at least 10% of jobs for road maintenance going to women.

The additional work will be financed by an ordinary capital resources loan of $ 30 million, a $ 68 million equivalent concessional Asian Development Fund loan, and surplus funds of $ 20 million earmarked for the original project, which was approved in 2010. There will also be further technical assistance of $ 1 million to support road oversight agencies. The extended project is set to be finished by the end of 2017.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2011, ADB approvals including co-financing totalled $ 21.7 billion.