Saturday, 4 January 2014 00:00
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By Uditha Jayasinghe
Continuing its enthusiasm for infrastructure development, the Government yesterday approved Rs. 3.3 billion worth of loans from China for a slew of road construction projects and building of 13 bridges.
President Mahinda Rajapaksa as the Minister of Highways, Ports and Shipping presented the paper outlining the projects worth Rs. 3.3 billion (US$ 25.4 million) to the first Cabinet meeting for 2014, which was approved.
Accordingly, China Development Bank will fund four road construction projects worth Rs. 2.2 billion. This will cover the Narandeniya- Hakmana Road (11.95 km), Ayagama-Egaloya Road (23km), Mawanella- Hemmathagama- Gampala Road (26 km) and Hatton-Maskeliya- Delhousie (31.89km).
The remainder will be supplied by EXIM Bank of Hunan Province, which will fund 85% of the cost for 13 bridges and five road projects scattered around the central parts of the country. The road projects are Kandy-Kirimatiya (7.64km), Ampitiya-Gurudeniya (2.25km), Nuwara Eliya-Ragala-Udupussallawa Road, Welimada- Kirklees (17.83 km) and Avisawella- Hatton (10.49 km).
“This is a continuation of the Government’s ambitious infrastructure development plan to increase economic growth in Sri Lanka,” Cabinet Spokesman and Media Minister Keheliya Rambukwella told reporters.
Since Sri Lanka ended a 30-year war in 2009, China emerged at the island’s largest loan provider with US$ 1.2 billion in loans in 2009 and US$ 821 million in 2010.
In 2011 the amount fell to US$ 784.7 million but China remains involved in almost all the large-scale projects taking place, according to the Finance Ministry.
Some of the biggest projects include a US$ 1.3 billion coal power plant on the north western shore as well as a host of other investments in the south of the country that are estimated to exceed US$ 4 billion, including a US$ 1.2 billion harbour.
