The Kaluganga Development Project is currently being implemented by the Ministry of Mahaweli Development and Environment with the financial assistance of Saudi Fund for Development (SFD), Kuwait Fund for Arab Economic Development (KFAED) and OPEC Fund for International Development (OFID). Kaluganga Reservoir has a capacity of 265 million cubic meters (MCM) of water and will divert 100 MCM annually to Moragahakanda Reservoir. Under this project, it is expected to develop new irrigable lands of nearly 3,000 ha in the Kaluganga Basin.

Unforeseen geological conditions in the foundations and necessary design revisions have led to price increase and it is noted that the funds available from the above donors is not sufficient to complete the balance work of the project.

SFD has agreed to provide an additional loan of SAR 60 million (USD 16 million, LKR 2,560 million) to finance a part of the shortfall. The Government of Sri Lanka has already entered into agreements with KFAED and OFID to finance a part of the balance of the shortfall.

Accordingly, the Loan Agreement has been signed today, 18th July 2018 at the Ministry of Finance and Mass Media by Dr. R.H.S. Samaratunge, Secretary to the Ministry of Finance and Mass Media on behalf of the Government of Democratic Socialist Republic of Sri Lanka and H.E. Eng. Yousef Ibrahim Al Abdulrahman Al Bassam, Vice Chairman & Managing Director on behalf of the Saudi Fund for Development.

Ministry of Finance and Mass Media

Colombo 01

Sri Lanka

On 18th July 2018

 

The OFID has been a major Development partner of Sri Lanka providing financial assistance to implement a number of strategically important development projects during the past two decades. Under current portfolio, OFID provides financing for road and irrigation sectors. The lines and working pattern of our workforce is bound to change with both emerging technologies and changing demand for skills. Therefore, it is necessary for Sri Lanka to align its education and skills development programme with emerging needs. The Vocational Training, Science, Technology and Research will be coming together for providing professional skills needed. The government recently introduced the 13 year mandatory education policy. It is compulsory to provide required infrastructure facilities and equipment with modern technology for practical activities as well as training of teachers. Accordingly, the Ministry of Education expects to construct technical laboratories and provide required machinery and equipment to the schools through the above project. The total cost of the project is USD 60.70 million. The OFID has agreed to provide a loan of USD 50.0 million in support of the above project. The balance USD 10.70 will be borne by GOSL. The Loan Agreement has been signed today, 3rd July at the Headquarters of OFID in Vienna, Austria by Dr R.H.S. Samaratunga, Secretary to the Ministry of Finance and Mass Media on behalf of the Government of Democratic Socialist Republic of Sri Lanka and Mr. Suleiman J. Al-Herbish, Director General of OFID on behalf of the OPEC Fund for International Development. Ministry of Finance and Mass Media Colombo 01 Sri Lanka On 3rd July 2018

 

The Government of Sri Lanka obtained ADB Financial assistance of USD 100 million in 2016 to finance the Small and Medium-Sized Enterprises (SME) Line of Credit Project. The objective of the project was to strengthen the SME sector in Sri Lanka by facilitating access to finance and expand the employment opportunities in the sector. The project is being successfully implemented and given the importance of this intervention, the Government of Sri Lanka decided to obtain an additional financing through a loan of USD 75 million with the intention to scale up the ongoing SME Line of Credit Project.

The Additional financing will be utilized to deliver four outputs through the project : Increase of financing to SMEs through intermediaries, Development of innovative SME financing scheme, Enhancement of capacity of SMEs in targeted clusters for accessing financial services and Strengthening of international competitiveness of information and communication technology/business process outsourcing (ICT/BPO) cluster.

The additional loan of USD 75 million is planned to be disbursed in 3 tranches of approximately USD 25 million each. The Government will relend the loan funds in local currency to participating banks through three semiannual allocations based on the banking sector’s average weighted deposit rate. The proceeds of the loan will be available to the participating banks for relending to the SMEs based on the previously agreed targets between the Asian Development Bank and the Government specially focusing on first time borrowers, women-led SMEs and SMEs located outside of Colombo etc. Further, participatory banks should achieve SME on-lending targets before participating in subsequent allocations.


The Ministry of Finance and Mass Media will be the Executing Agency of the SME Line of Credit (Additional Financing). The Department of Development Finance will be the Implementing Agency for Outputs of Increase of financing to SMEs through intermediaries, Development of innovative SME financing scheme and Export Development Board will be the implementing agency for outputs of Enhancement of capacity of SMEs in targeted clusters for accessing financial services and Strengthening of international competitiveness of information and communication technology/business process outsourcing (ICT/BPO) cluster. The overall project is scheduled to be completed by 31st March 2020.

In this connection, Dr. R H S Samaratunga, Secretary to the Ministry of Finance and Mass Media 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 loan agreement to obtain USD 75 million on 16th February 2018 at the Ministry of Finance and Mass Media.

 

 

 

USD 453 mn from ADB for Mahaweli Water Security Investment Program

-      The Total Investment USD – 675 m

The Mahaweli Water Security Investment Program is one of the major ongoing investment program currently being implemented under the loan assistance of the Asian Development Bank(ADB) The total investment cost of this program is USD 675 million of which USD 453 million will be provided by ADB under Multi - tranche Financing Facility (MFF). The Government of Sri Lanka has already signed two loan agreements with ADB to obtain USD 150 million to finance the first tranche of the programme.

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 North Western, North Central and Central Provinces. Constructions of 158 Km canals including 38 km of tunnels are being implemented. In addition construction of two new reservoirs with storage capacity of 36 MCM (Million Cubic Meters) are also included in the program. Rehabilitation of 74 km Minipe Left Bank Canal is also programmed under this investment.

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 whole program. In addition, provision of safe drinking water for people live in those areas will help to prevent Chronic Kidney Disease. (CKD)

 

DSC 0101

 The Government of Sri Lanka entered into 3 Loan Agreements worth of USD 270 million with the Asian Development Bank for the implementation of two projects; Integrated Road Investment Program and Jaffna Kilinochchi Water Supply Project. A loan of USD 150 million was obtained for the investments required for the 4th Tranche of the Integrated Road Investment Program and two loans worth of USD 120 million were obtained as additional financing for the investment required for the ongoing Jaffna Kilinochchi Water Supply Project.

Integrated Road Investment Program – Tranche 4

The Integrated Road Investment Program 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 Asian Development Bank 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 program. In addition, the program 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 program 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 contribution for the total program 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.

Jaffna Killinochchi Water Supply and Sanitation Project – Additional Financing

Safe drinking water is an essential prerequisite for better health and socio economic development in a country .The focus of the Government to provide safe drinking water to the entire population of the country by 2020 of which 60 percent would be pipe borne water.

In line that, the overall impact of the Jaffna Killinochchi Water Supply Project is to improve health and human development in urban areas of Jaffna Peninsula. Improvement of headwork at the Iranamadu water Tank, implement of water supply infrastructure and services in the Jaffna Peninsula and strengthening of water resources management system are the main components of this project. Additional financing of the Jaffna Kilinochchi Water Supply Project will support restructuring of the current project by financing the cost overrun under the current project and supporting the additional activities of the desalination plant and related works under the component of improvement of water supply infrastructure and services in the Jaffna Peninsula and additional activates of the water resource management system component.

The total investment cost of the Jaffna Killinochchi Water Supply Project - Additional Financing will be US$ 153 million. The Government will contribute US$ 33 million and the balance portion of US$ 120 million will be provided in two loans by ADB

In this connection, at the Ministry of Finance and Mass Media, Dr. R H S Samaratunga, Secretary of the Ministry of Finance and Mass Media 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 a three Loan Agreements on 15th December 2017 to obtain USD 270 million for the implementation of the Integrated Road Investment Program – Tranche 4 and Jaffna Killinochchi Water Supply Project (Additional Financing).

 

 

 

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