- Funds to be used for rehabilitation of roads and irrigation systems damaged due to emergency natural disasters in North Central, Central and Eastern Provinces
- This loan is provided at a concessionary interest rate of 0.01% per annum with a repayment period of 40 years, including a grace period of 10 years
In a reaffirmation of its longstanding commitment, Japan yesterday granted a soft long-term loan worth Rs. 10 billion for Sri Lanka to rebuild roads and irrigation systems damaged by floods in the three provinces.
The Finance Ministry said yesterday that socioeconomic activities of people in the North Central, Central and Eastern Provinces were highly affected due to flood and landslide caused by the heavy rain during December 2010-February 2011.
Post floods, the Government initiated the Emergency Natural Disaster Rehabilitation Project with the aim of restoring socioeconomic activities and providing protection from further damage in the affected areas, thereby contributing a sustainable living environment.
“The Government of Japan has agreed to provide a loan of Rs. 9,940 million (Japanese Yen 7,000 million) to implement this project,” the Finance Ministry said.
This loan is provided at a concessionary interest rate of 0.01% per annum with a repayment period of 40 years, including a grace period of 10 years.
It is expected to rehabilitate 30 km of national roads, 90 km of provincial roads and 14 km of rural roads in the North Central Province, 50 km of national roads, 40 km of provincial roads and 14 km of rural roads in the Central Province and 46 km of national roads, 100 km of provincial roads and 23 km of rural roads in the Eastern Province under this project.
In addition 50 small scale irrigation schemes each from the North Central and Eastern Provinces and 70 medium and large scale irrigation schemes in the North Central and Eastern Provinces will be rehabilitated.
The project will be implemented by the Road Development Authority, Department of Irrigation, Provincial Road Development Authorities of North Central, Central, and Eastern Provinces, Provincial Departments of Irrigation in North Central and Eastern Provinces under the supervision of the Department of National Planning, Ministry of Ports and Highways, Ministry of Irrigation and Water Resources Management and Ministry of Local Government and Provincial Councils.
The signing of Exchange of Notes pertaining to the loan took place yesterday, at the Ministry of Finance and Planning. Kunio Takahashi, Ambassador of Japan in Sri Lanka signed the Exchange of Notes on behalf of the Government of Japan while Dr. P. B. Jayasundera, Secretary, Ministry of Finance and Planning, signed on behalf of the Government of Sri Lanka.
A Loan Agreement was also signed between the Government of Sri Lanka and Japan International Cooperation Agency (JICA) with Jayasundera and Akira Shimura, Senior Representative of JICA Sri Lanka Office on behalf of the Government of Sri Lanka and JICA respectively.