17/09/2015
ADB Provides loan assistance of USD 150 million for the Implementation of Mahaweli Water Security Investment Program (Tranche1)

The Government is planning to transfer Mahawali Water to North western, North Central and Northern Provinces under the Mahaweli Water Security Investment Program with the aim of maximizing the productivity of Mahaweli River Basin water resources. The total investment cost of this program is around Rs 90 billion (USD 675 million) and the Government of Sri Lanka has entered in to two loan agreements to obtain financial assistance for tranche1 of the above program.

ADB has agreed to provide USD 453 million under the Multi - tranche Financing Facility (MFF) of ADB through three tranches for the implementation of this program. The Government contribution for the total program is USD 108 million and the balance USD 114 million will be arranged through co-financing .The total investment cost of tranche 1 is USD 190 million and USD 150 million will be obtained from ADB as loans. The Government will invest balance USD 40 million.

Three major investment projects; Upper Elahera Canal Project, North Western Province Canal Project, Minipe Left Bank Canal Rehabilitation Project will be implemented under the above investment program. The construction of new and improved water conveyance and storage infrastructure under this program will increase the productivity of agricultural lands in the above provinces.  25,000 farmer families under Upper Elahera Canal Project, 40,000 farmer families under North Western Province Canal Project and 15,000 farmer families under Minipe Left Bank Canal Rehabilitation Project will be directly benefited through this program. In addition, provision of safe drinking water for people live in those areas will help to prevent Chronic Kidney Disease. (CKD) 
This project will be implemented by the Mahaweli Authority of Sri Lanka and Department of Irrigation under the supervision of the Ministry of Mahaweli Development and Environment

In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the two Loan Agreements to obtain USD 150 million on 17th September 2015 at the Ministry of Finance. 


Ministry of Finance
Colombo 01




30/12/2014
Proposed Deduru Oya and Ruwanwella Water Supply Projects in Kurunegala and Kegalle Districts

The Government of Republic of Korea has agreed to provide two concessional loans for USD 78.685 million (Approximately Rs.10,230 million) to improve water supply facilities for the people in Kurunegala and Kegalle districts in line with the Government’s target of providing safe drinking water for all citizensRapid spreading of chronic kidney disease has become a burning issue in Sri Lanka. Mahawa and Polpithigama divisions in Kurunegala District have been identified as the prominent areas of chronic kidney disease due to consumption of unsafe ground water. Also, dug wells in Ruwanwella area in Kegalle District get dry during the dry period and people in this area suffer from shortage of drinking water.

Therefore, provision of safe drinking water to residents in Mahawa, Polpithigama and Ruwanwella areas by developing a piped water supply schemes is vital, and it will help to decrease the incidence of water borne diseases and shortage of drinking water in these areas.
The GOSL had bilateral discussions with the Government of Korea to get financial assistance for the above purposes, and accordingly GOK has agreed to provide two concessional loans amounting USD 58.155 million (Approximately Rs. 7,560 million) and USD 20.530 million (Approximately Rs. 2,670 million) for Deduru Oya and Ruwanwella water supply projects respectively through Economic Development Cooperation Fund of the Export- Import Bank of Korea.
The signing of Loan Agreement pertaining to the above loan took place today, at the Ministry of Finance and Planning. Loan Agreement was signed by Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning and Mr. YIM Seong-Hyeog, Vice President of the Export- Import Bank of Korea. The projects will be implemented by the National Water Supply & Drainage Board under the Ministry of Water Supply and Drainage.
Ministry of Finance and Planning
Colombo -01


17/10/2014



537 Rural Bridges to be constructed under credit facility of USD 162 million

The Deutsche Bank AG (London) & the Bank of Tokyo-Mitsubishi UFG Ltd has agreed to provide a credit facility of USD 162 million to finance construction and rehabilitation of 537 rural bridges with lengths of 6-30 metres covering the entire island.
The construction of these bridges will immensely facilitate in creating opportunities for rural and estate communities residing in remote areas connecting a number of villages. It will enhance the quality of living standards of the people in these areas. Reduction of travel time and distance travelling would bring benefits to these communities

Further it will link rural communities with the main stream of development and ensure equal distribution of the country’s development benefits between urban, rural and estate sector.The Project will be implemented by the Ministry of Economic Development.
The signing of the agreements pertaining to the above loan took place at the Ministry of Finance and Planning. H.E. Mr. John Rankin British High Commissioner to Sri Lanka signed the agreements on behalf of the UK Government while Dr P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka.

Representatives from Deutsche Bank and the Bank of Tokyo-Mitsubishi UFG Ltd also signed the agreements


Ministry of Finance and Planning
Colombo -01
17/10/ 2014



17/10/ 2014

A loan of US$ 20.7 million to import 2,500 cows to NLDB to increase milk production in the country

The Government has given high priority to increase the local milk production to cater local consumption requirements. However, acute shortage of quality dairy animals in the country has hampered the Government efforts to develop the dairy industry thereby reaching self sufficiency in milk. Therefore, Government has already imported 2,000 high yield cows to National Livestock Development Board NLDB farm complex in Bopaththalawa and the infrastructure of the farm complex was developed.  With the success of the above project, the Government decided to import a further batch of 2500 cattle, to the Ridiyagama farm in the Hambantota district and a new farm complex will be constructed with all latest technologies to house these cattle.

The Cooperatiieve Centrale Raifffeisen-Boerenleenbank (Rabobank) of Netherlands and the Export Finance Insurance Corporation (EFIC) of Australia have agreed to provide a loan in a sum of US $ 20,747,293.34 for the implementation of this phase of the project.
The signing of the agreement pertaining to the above loan took place at the Ministry of Finance and Planning. Ms. Karin Kobelentz, Director, Structured Trade & Project Finance on behalf of EFIC, Australia and Han Bartelds, Vice President, Structured Trade and Export Finance on behalf of Rabobank, Netherlands signed the agreement while Dr P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka. Deputy High Commissioner of Australia in Sri Lanka also participated in the ceremony.

Ministry of Finance and Planning
Colombo -01
17/10/ 2014


28/03/2014

New Bridge Construction Project over the Kelani River

The Development Policy Framework of the government envisages a modern economic infrastructure system covering entire country. The strategic city development programme of the government identified by the Mahinda Chinthana policy framework is now been implemented parallel to the development of road and expressway network of the country to suite a middle income economy. Under the above programme all cities which are strategically important will be developed as planned cities recognizing their uniqueness.

Plans are being already formulated to increase the accessibility to the express way network from the city of Colombo which controls the expected traffic congestion at the existing Kelani Bridge due to transformation of Colombo city to a modern city along with successful completion of express way network. As the traffic volume in Colombo city has increased significantly during last few years, studies are now being undertaken to construct an elevated road network to divert the Colombo traffic to the expressway network in order to minimize the traffic congestion. Meantime, Government plans to build a new bridge across the Kelani river, linking Colombo city and Colombo Katunayake Expressway to mitigate and disperse the increased traffic congestion in the city areas. This will also expect to improve the accessibility to Colombo Port and Expressway Network.

For the purpose, the Government has decided to obtain assistance from the Government of Japan, a major development partner of Sri Lanka who has provided grant assistance since 1989 for construction of bridges as well as other infrastructure facilities in the country. As a result of bilateral discussions  had with the Government of Japan, the Government of Japan agreed to provide a concessional loan  amounting to Japanese Yen 35,020 million (Approximately Rs. 45,526  million) through Japan International Cooperation Agency to construct the second new Kelani bridge.

The signing of Exchange of Notes pertaining to the above Yen loan package took place today, at the Ministry of Finance and Planning. His Excellency, Mr. Nobuhito Hobo, 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 singed on behalf of the Government of Sri Lanka. Loan Agreement was also signed by Dr. P B Jayasundera, Secretary, Ministry of Finance and Planning and Mr. Kiyoshi Amada, Chief Representative of JICA Sri Lanka Office on behalf of the Government of Sri Lanka and JICA respectively.



Ministry of Finance and Planning
Colombo -01
28th March 2014



30/01/2014

Construction and Rehabilitation of 25 Bridges of the National Road Network

The Development Policy Framework of the Government has identified the necessity of rehabilitation and improvement of national road network of the country on a priority basis to improve the efficiency of transport services. Accordingly, the government has assigned high priority for widening and improvement of the narrow bridges which are very old and have reached their maximum serviceable life. Deterioration caused over time by heavy traffic and an adverse environment conditions have resulted higher frequency of repairs in to old bridges and reduced the carrying capacity. In this context, it is required to construct and rehabilitate narrow bridges of the national road network by increasing its connectivity covering the entire island and expanding opportunities of people's access suitable for current requirement. 

The KFAED has agreed to provide USD 36 million for construction and rehabilitation 25 narrow bridges including 9 bridges in Western Province, 3 bridges in Southern Province, 5 bridges in North Western Province, 4 bridges in Sabaragamuwa Province, 3 bridges in Northern Province and a bridge in Eastern Province. Implementing of this project will help to mitigate traffic congestion in high traffic corridors and traffic accidents while improving the connectivity of the road network.

The Kuwait Fund for Arab Economic Development has extended USD 196 Million since 1975 with concessional terms and conditions for the development of Sri Lanka. They have funded for diversified areas such as education, irrigation and the road development sectors. Kalu Ganga Development Project, South Eastern University Development Project, Bridges rehabilitation and reconstruction project and Strengthening of Tertiary Education and Administrative Infrastructure in Tsunami Affected Areas are the significant projects which are currently being implemented with KFAED assistance.

The loan agreement for USD 36 million (Kuwait Dinar 10) for Reconstruction and Rehabilitation of 25 Bridges of the National Road Network was signed today (30.01.2014) at the Ministry of Finance and Planning by Dr. P.B. Jayasundera, Secretary of Ministry of Finance and Planning on behalf of Government of Sri Lanka and Mr. Hesham Al-Waqayan, Deputy Director General of Kuwait Fund for Arab Economic Development. The proposed project will complement the program for construction of 1000 rural bridges island wide.

30th January 2014
Ministry of Finance and Planning



14/02/2012
Hungary provides Rs. 6 Billion (Euro 35 mn) for Rehabilitation of Labugama and Kalatuwawa Water Treatment Plants

The water requirement of most of the residents living in the Colombo Municipal Council area and suburbs is served from Ambatale, Labugama and Kalatuwawa water treatment plants. Labugama and Kalatuwawa water treatments plants constructed in 1886 and 1957 respectively supply 13.5 % of the water requirement of Colombo City and suburbs. At present, Labugama and Kalatuwawa water treatment plants produce 45,000m3/day 52,000m3/day of treated water respectively. Rapid growth of population including the daytime population in Colombo has resulted in increase water demand. On the other hand, various problems of raw water quality and deterioration of plants especially in the sand filters have reduced the production capacity of these two plants. It is therefore, required to increase the capacity of existing water treatment plants to cater for the rapid demand. As both Labugama and Kalatuwawa water treatment plants are situated at high elevation, rehabilitation and augmentation of these two plants will enhance the supply of low cost water to Colombo City with a minimum maintenance.

In considering the request made by the Government of Sri Lanka, the Hungarian Export - Import Bank Private Limited Company (Hungarian Exim Bank) has agreed to provide financial assistance of Euro 35 million for the Rehabilitation of Labugama and Kalatuwawa Water Treatment Plants.

Under this project, the water treatment process of the two plants will be transformed to high-tech process which improves the water quality significantly.  The production capacity of Labugama and Kalatuwawa plants would also be increased from 45,000m3/day to 60,000m3/day and 52, 000m3/day to 90,000m3/day respectively. Total increase of the production capacity would be 53,000m3/day. The total population of 700,000 in the areas of Colombo Municipal Council and the areas of Kolonnawa, Ja-Ela, Maharagama, Homagama, Pannipitiya, Piliyandala, Mattegoda and Biyagama will be benefitted from this project.

The National Water Supply and Drainage Board will implement the project under the supervision of the Ministry of Water Supply and Drainage and the project is expected to be completed in early 2015.

The signing of two Loan Agreements pertaining to the above project took place today at the Ministry of Finance and Planning.  Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed the Loan Agreements on behalf of the Government of Sri Lanka while Dr. Viktor Nagy, Deputy Chief Executive Officer and Dr. Szilvia Némedi-Varga, Chief Expert signed the agreements on behalf of Hungarian Exim Bank.


Ministry of Finance and Planning
Colombo 01.
14th February 2013

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OPEC Fund for International Development provides USD 40 mn for Road Network Development Project 

The development policy framework of the Government has identified necessity of the rehabilitation and improvement of national road network of the country on the priority basis to improve the efficiency of transport services of the country.

OPEC Fund for International Development (OFID) has agreed to provide USD 40 million (Approximately Rs 5,200 mn) for Road Network Development. The proceeds of the loan will be utilized for improvement and rehabilitation of 64 km of seven national roads and reconstruction of a bridge of 120 m length with 4 lanes.   Implementation of this project will improve the road connectivity, ensure smooth traffic flow, avoid delays in travel, prevent wasting of time on the road, especially in high traffic corridors and contribute for the economic development of the country.

The cooperation between the OFID and Sri Lanka commenced in 1976 and has so far extended 14 loans for development projects in Sri Lanka amounting to USD 138 mn on concessional terms. Kalu Ganga Development Project and National Highway Sector Development Project are ongoing major development projects co-financed by OFID.

The Loan Agreement of the  Road Network Development Project was signed today (08.10.2012) at the Temple Trees by Dr. P.B.Jayasundera, Secretary, Ministry of Finance & Planning on behalf of the Government of Sri Lanka and Mr. Suleiman J. Al-Herbish , Director General, OFID on behalf of the OFID. The rehabilitation and reconstruction works of this project will be completed at the end of 2014.


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05/04/2012

FINANCIAL ASSISTANCE OF EURO 78 OF MILLION FROM RABOBANK OF NETHERLANDS FOR THE DEVELOPMENT OF HAMBANTOTA AND NUWARA ELIYA DISTRICT GENERAL HOSPITALS

It is the policy of the government to upgrade basic hospitals to the level of district hospitals through the development of healthcare facilities and provision of necessary medical equipments. This will facilitate in improving their existing curative care services and to provide the people living in the area with access to modern and quality care services. Accordingly, priority of the government has given to mobilize financial assistance for the urgent and essential development activities in the health sector.

Hambanthota District General Hospital serves about a population of nearly 675,000 residents within the district, majority of whom are low income farmers. The hospital is very old and therefore priority has given to improve health service facilities of this hospital.  It is expected to provide high quality health facilities to general public living in Hambantota and other peripheral areas by construction of nine storied 800 bedded new hospital with 8 operating theatres, medical equipment and other healthcare facilities. The total floor area of the building is 35,000m2 and it is expected to complete the project within a 30 month period.
District General Hospital-Nuwaraeliya which provides specialist care for over a 700,000 people in the district has been constructed over 100 years ago. This hospital serves the estate population in Hatton, Maskeliya, Norton Bridge, Welimada, Walapone, Haguranketha and Pussallawa divisions. The proposed Nuwara Eliya Hospital which will be built close to the existing base hospital will include 600 beds and 7 operating theatres. The total floor area of the hospital complex is 30,000m2 which is designed as a four storied building considering the topography of the site in order to preserve the natural environment of the vicinity. The development of this hospital including supplying and installation of equipment is scheduled to be completed within a 30 months period.
The total cost of the projects for development of Hambantota and NuwaraEliya District General Hospitals are Euro 46,842,156.91 and Euro 39,649,042.75 respectively. In addition, People's Bank has agreed to provide approximately 2.5 million Euro to finance the above development projects. Accordingly, Loan agreements between Rabobank of Netherland and Government of Sri Lanka were signed on 05th April 2012 for the provision of 78 million Euro (approximately 12,870 million rupees) to implement the of the projects of Development of Hambanthota and NuwaraEliya District Hospitals.


Ministry of Finance and Planning
Colombo


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14/12/2011

LKR 9,347 millions from Asian Development Bank to Rehabilitate Access Roads to Southern Expressway

The Government, having recognized the requirement to rehabilitate the roads connecting to the Southern Expressway (SE), the first ever expressway in Sri Lanka, paid more attention in arranging necessary funds for this purpose and as a result has been able to obtain financial assistance of Rs. 9,348.61 mn (USD 85.0 mn) from the Asian Development Bank (ADB). The total estimated cost for rehabilitation of these roads is LKR 11,613 mn (USD 105.6 mn). Six access roads to SE are expected to be rehabilitated under the above project.

These rehabilitation works are crucial to improve the connectivity of roads and to realize the full potential benefits from the SE. The Government contribution to the above investment will be LKR 2,265.42 millions (USD 20.6 millions) while the balance will be obtained as a loan from ADB's Ordinary Capital Resources (OCR).

Rehabilitation work of the identified road sections will be carried out under the 2nd phase of the ongoing National Highway Sector Project (NHSP) which was commenced in 2007 with the aim of rehabilitating 270 Kilometers of national highways and improving the transport sector regulatory framework. 

Under the 2nd phase of National Highways Sector Project , 62 kms  of national highway road sections on Matara - Akuressa (3.40 km), Hikkaduwa - Baddagana (14.34km), Horana - Aguluwatota - Aluthgama (23.48 km), Katukurunda - Naboda (2.72km), Kirulapona - Godagama (5.33 km) and Colombo - Horana (12.7 km) are planned to  be rehabilitated. These selected 6 road sections usually experience high traffic volume. Therefore, the rehabilitation of these 6 road section will facilitate easier access to the new expressway while improving the transport efficiency of the national highways network.
The Road Development Authority (RDA) under the supervision of the Ministry of Ports and Highways will perform as the project implementing agency. The project is expected to be completed by 30th June 2016.
A loan agreement was signed in this connection by the secretary, Ministry of Finance & Planning on behalf of the Government and the ADB Country Director on behalf of the Asian Development, today at the Ministry of Finance & Planning. 


14th  December 2011
Ministry of Finance & Planning
Colombo 01



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