SL secures US $ 270mn ADB loan for roads, water supply
Sri Lankan government has entered into three loan agreements worth of US $ 270 million with the Asian Development Bank (ADB) for the implementation of two projects— Integrated Road Investment Programme and Jaffna Kilinochchi Water Supply Project.
A loan of US $ 150 million was obtained for the investments required for the fourth tranche of the Integrated Road Investment Programme and two loans worth of US $ 120 million were obtained as additional financing for the investment required for the ongoing Jaffna Kilinochchi Water Supply Project.
The Integrated Road Investment Programme is being implemented in six Provinces; i.e. Southern, Central, Sabaragamuwa, North Western, North Central Provinces and Kalutara district in Western Province under the financial assistance of ADB since 2014 with the aim of building up better connectivity between rural communities and socio economic centers. About 3108 km of rural access roads and about 248 km of national roads will be improved and maintained under this programme. In addition, the programme is focused on enhancing the capacity of road agencies on road asset management, project management and contract administration. The total investment cost of the overall programme is US$ 906 million of which US$ 800 million will be provided by ADB under Multi-tranche Financing Facility (MFF) through six tranches.
The government’s contribution for the total programme is US$ 106 million. The government has already obtained loan assistance of US$ 407 million from ADB under the 1st, 2nd and 3rd tranches.
The total investment cost of the proposed tranche 4 is US$ 168 million. The Government will contribute US$ 18 million and the balance US$ 150 million will be obtained from ADB.
Meanwhile, safe drinking water is an essential prerequisite for better health and socio economic development in a country.