Press Releases

PRESS RELEASE

The First Two Sri Lankan Projects Funded by the Asian Infrastructure Investment Bank

The loan agreements for the first two projects financed by the Asian Infrastructure Investment Bank (AIIB) were signed between the Government of Sri Lanka and the AIIB on 25 April 2019 in Beijing, People’s Republic of China. The Vice President and Chief Investment Officer of AIIB Dr. D J Pandian signed on behalf of the AIIB, and H E the Ambassador of Sri Lanka in Beijing, People’s Republic of China, Dr. Karunasena Kodituwakku signed on behalf of the Government of Sri Lanka.

1.       Reduction of Landslide Vulnerability by Mitigation Measures Project

The total project cost of Reduction of Landslide Vulnerability by Mitigation Measures Project is estimated at USD 110 million. The objective of the proposed project is to reduce risk and damage from landslides through the implementation of physical mitigation measures and enhancement of policy and regulation associated with landslide management. The project will include field investigations, detailed designs, construction works and construction supervision/management activities for the landslide mitigation measures for prioritized 147 sites in 10 selected districts.

The AIIB, which is a multi-lateral bank has agreed to finance this project through a loan facility of USD 80 million. The GOSL will provide USD 30 millionwhich will cover the relevant taxes and cost of initial design and investigation works. This project will be implemented by National Building Research Organization (NBRO) under the supervision of Ministry of Public Administration and Disaster Management.

2.       Support to Colombo Urban Regeneration Project

The Support to Colombo Urban Regeneration Project will support the continued implementation of Urban Regeneration Project Phase III, which is currently being implemented by the Government.  The total project cost of Support to Colombo Urban Regeneration Project is estimated at USD 287 million. The objectives of this project are to improve the housing conditions of low-income communities and increase land use efficiency in Colombo through investments in the construction of affordable housing and redevelopment of land, along with the associated enhancement of systems and policies.

The AIIB has agreed to finance this project through a loan facility of USD 200 million. The GOSL will provide USD 82 millionwhich will cover the relevant taxes and cost of initial design and investigation works. The balance USD 5 million will be provided through a private partner. This project will be implemented by Urban Development Authority (UDA) under the Ministry of Megapolis and Western Development.

Issued by the Department of External Resources on 30^th April 2019.

The Government of Sri Lanka has entered into a loan agreement worth of USD 50 million with the Asian Development Bank to finance the Rooftop Solar Power Generation Project. 

The main objective of this project is to support government’s “Battle for Solar Power Programme” to achieve the target of 200 MW by 2020 and 1000 MW by 2025 through solar power generation. Clean and sustainable power generation will be enhanced through the proposed project by increasing debt facilities and funding for the rooftop solar power generation, developing solar rooftop market infrastructure and bankable subproject pipeline. It is expected to add 50 MW to the national grid under this project. 

The Department of Development Finance of the Ministry of Finance and Mass Media which is the Implementing Agency of the project, will coordinate with the selected financial institutions to provide credit facilities to the customers to purchase Rooftop solar panels from reliable suppliers who registered under the Sustainable Energy Authority. The Ceylon Electricity Board (CEB) and Lanka Electricity Company Ltd (LECO) will support the project implementation by providing technical recommendations to the Financial Institutions regarding technical proposals of the applicants (customers) and reviewing and approving applications for connection of solar rooftop systems to the distribution network and confirming quality of generated power. In addition, customers will be benefited financially through one of the system among net metering, net accounting or net plus as a result of connecting solar electricity generated by this project to the national grid. 

The total investment cost of this project is USD 59.8 million of which USD 50 million will be provided by ADB. Equity contribution by customers for the subprojects will be USD 9.8 million. 
In this connection, 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 Loan Agreement on 18th September 2018 at the Ministry of Finance and Mass Media. 

With the present development of the Colombo City and its suburb, many skyscraper buildings with multiple floors are being constructed and hence there is an urgent necessity for ensuring the safety of these properties and the inhabitants.

However, the vehicle fleet of the Fire Service Department in Colombo Municipal Council is very old and incurring a significant expenditure for annual maintenance. Hence there is a necessity to have a new fleet of vehicle in order to minimize the maintenance cost as well as to ensure the safety of the properties and the inhabitants.

Accordingly, the Ministry of Internal & Home Affairs and Provincial Councils & Local Government has concluded a contract agreement with the M/S Rosenbauer International AG with a total estimated cost of Euro 10,317,000 (approximately Rs. 2100 mn) for Supplying of Firefighting Vehicles and Equipment for the Colombo Municipal Councils. 6 medium tank fire fighting and rescue vehicles, 3 heavy tank fire fighting vehicles, 2 heavy rescue vehicles, a mobile command centre and 3 aerial ladders will be supplied under this contract.

The UniCredit Bank, Austria, AG agreed to provide a loan of Euro 10.317 million in support of the above project. The Loan Signing ceremony of the above Loan Agreement with the UniCredit Bank was held at the premises of Bank Austria in Vienna with the participation of Secretary to the Ministry of Finance and Mass Media, Director General of the Department of External Resources, Mr. Dieter Hengl (Member of board) and Mrs. Mary-Ann Hayes on 12^th February 2019.

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