SL gets Rs. 59 b from Japan

Japan has agreed to provide Japanese Yen 41 billion (approximately Rs. 59 billion) for four major development projects following a request from the Government.

The four projects in priority sectors include power and energy, roads and bridges, disaster management and water supply with the objective of enhancing economic growth further by improving economic infrastructure.

The signing of the loan agreements pertaining to the above loans took place yesterday at the Ministry of Finance and Planning. Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning on behalf of the Government of Sri Lanka and Harumi Ao, Chief Representative of Japan International Cooperation Agency (JICA) Sri Lanka Office on behalf JICA signed the four loan agreements.

The Finance Ministry said financial assistance is extended under the Japanese annual Yen Loan Scheme through the administration of Japan International Cooperation Agency (JICA). The 43rd yen package is currently being processed and its funds will be utilised for implementing the Greater Colombo Transmission and Distribution Loss Reduction Project, Major Bridges Construction Project of the National Road Network, Landslide Disaster Protection Project of the National Road Network and Anuradhapura North Water Supply Project Phase I.

Rs. 23 billion investment for Greater Colombo Transmission and Distribution Loss Reduction Project

It is expected to utilise Rs. 23 billion to construct modern and safe transmission and distribution network in the Greater Colombo Area to meet growing electricity demand especially due to the present development and investment promotion activities in that area and to reduce electricity loss in transmission and distribution.

With the construction of reliable transmission and distribution network in the Greater Colombo Area utilising this loan funds, transmission and distribution losses will be at minimum level and the total electricity losses will be reduced to 12% by 2020. Further, project will be contributed in preventing climate changes by carbon dioxide mitigation.

The project will ensure continuous power supply for newly-constructing hotels and commercial complexes and the Port City of Colombo to facilitate economic activities of commercial community in the region thereby contributing to economic development directly as well as indirectly. Accordingly, the cost of investment, Rs. 23 billion, would be recouped earlier than the 40 year repayment period.

Rs. 18 billion investment for Major Bridges Construction Project of the National Road Network

The Government will invest Rs. 18 billion for the construction of 37 major new bridges of the national road network covering the entire island, simultaneous to the expansion of road networks facilities by paying special attention to creating an efficient and reliable transport system for rapid and sustainable economic development of the country and improvement of living standard of the people.

This loan financing will be utilised to construct selected bridges using advanced technologies with a view to meeting the traffic congestion while other bridges are expected to widen in parallel to the expansion of road system.

Advanced and novel technologies will be used in bridge construction to bear any kind of climate changes prevailing in each province, effects of sea water and other conditions and it is expected to strengthen lifespan and minimise the maintenance cost of bridges.  Implementation of this project will create more economic opportunities especially for people living in emerging regions while enhancing accessibility through the whole island. This loan which is obtained under concessionary annual interest rate of 0.2% will be repaid before the loan repayment period of 40 years through the economical benefits that will generated by the project.

Rs. 11 billion investment for Landslide Disaster Protection Project of the National Road Network

The Government is expected to invest Rs. 11 billion to protect the national road network targeting ‘A’ class roads in highland areas and to minimise the destruction of human lives and properties from landslide disasters by realising the necessity of a long-term sustainable solution to protect the developed infrastructure facilities from natural disasters while strengthening the disaster management policy of the country. Modern technological knowledge and financial assistance will be provided under this project for the above purposes.

This loan will be utilised to mitigate damages caused by landslides in high risk areas of 10 identified districts and to implement countermeasures to protect road system covering Central, Sabaragamuwa and Uva Provinces and to improve road safety using advanced technologies and expertise knowledge. In addition, it is proposed to establish an Early Warning System too.

The implementation of this project will be contributed to prevention and mitigation of the landslide disasters, improvement of the road safety and reliability, reduction of cost for reconstruction of roads and minimising road traffic congestion due to road closing in disaster situations.

Rs. 7 billion investment for Anuradhapura North Water Supply Project Phase 1

In Anuradhapura District, 85% of the population living in rural areas in depend on the sources of unsafe ground water, which contains high fluoride and hardness for their drinking and other requirements because of the lack of enough water supply facility with a high tendency of causing chronic kidney diseases and fluorosis. Hence the Government has decided to invest Rs. 7 billion for Anuradhapura North Water Supply Project Phase 1, ensuring enough and safe drinking water in an urgent manner.

The main objective of this project is to construct a water supply scheme to provide safe drinking water for people who live in Anuradhapura North area by increasing water supply regions and improving health conditions. Accordingly, it is expected to cover Medawachchiya, Rambewa, Divisional Secretariat Divisions in Anuradhapura District under the Mahakanadarawa Water Supply Scheme and design of the Wahalkada Water Supply Scheme, which will be implemented under this project.