Department of External Resources

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

21/10/2011

US$ 59 million (Rs. 6490 million) Investment for "Pura Neguma" Project

The Asian Development Bank (ADB) has agreed to provide funding assistance of US$ 59 million for the implementation of the "Pura Neguma" Project with the objective of achieving a balanced regional development in the country while improving the Local Government infrastructure and service delivery.

The total investment cost of this project is US$ 68.77 million (Rs. 7564 million). It includes a loan of US$ 59 million (Rs. 6490 million) from the Asian Development Fund (ADF) while US$ 9.77 million (Rs. 1074 million) will be provided by the Government of Sri Lanka.

The following components are expected to be implemented under "Pura Neguma" Project namely, (a) Improvement of local government infrastructure and service delivery in effective and efficient manner, (b) Local government policy reform and capacity building support for institutionalization of new systems in simplified taxation, licensing, and transparent approval systems while updating the capacities of Local Governments to manage these systems and (c) Project management and administration support. Accordingly, at the end of the programme, the Local Authorities will be more accountable and financially and technically strengthened to deliver their services efficiently and effectively.

The following specific interventions are expected to be carried out under the project;

(a) Provision of capital grants for about 100 selected local authorities for the implementation of eligible subprojects such as water supply and sanitation (including sewerage), drainage, solid waste management, roads and bridges (including suspension bridges), improvement of maternity and health centers and other local authority infrastructure facilities such as public markets.

(b) Supporting the improvement of Information Systems in Local Authorities. This includes updating and computerizing databases of rates, taxes and licenses, developing the financial accounting and asset management systems.

(c) Institutionalization of new systems in simplified taxation, licensing, and transparent approval systems while updating the capacities of Local Governments to manage these systems.

"Pura Neguma" - Local Government Enhancement Project, which is expected to be implemented with ADB loan funds, is scheduled to be completed by 30th June 2015. The subproject coordinating units proposed to be established in each Local Government Commissioner's office in each Province under the supervision of the Ministry of Local Government & Provincial Councils and these units will perform as the project implementing agencies.

In this Connection, Secretary to the Ministry of Finance and Planning, on behalf of the Government of Sri Lanka and the Country Director of ADB on behalf of the ADB, signed the Loan Agreement today at the Ministry of Finance & Planning.

21st October 2011

Ministry of Finance and Planning

Colombo 01.

29/09/2011

Rs. 9,940 million Loan from Japan for Rehabilitation of Roads and Irrigation Systems Damaged due to Emergency Natural Disasters in North Central, Central and Eastern Provinces

Socio economic activities of people in the North Central, Central and Eastern Provinces were highly affected due to flood and landslide caused by the heavy rain during December 2010 - February 2011. The Emergency Natural Disaster Rehabilitation Project will be implemented with the aim of restoring socio economic activities and providing protection from further damages in the affected areas, thereby contributing a sustainable living environment. The Government of Japan has agreed to provide a loan of Rs. 9,940 million (Japanese Yen 7,000 million) to implement this project.

This loan is provided at a concessionary interest rate of 0.01% per annum with a repayment period of 40 years including a grace period of 10 years.

It is expected to rehabilitate 30Km of nationals roads, 90Km of provincial roads, 14Km of rural roads in North Central Province, 50Km of national roads, 40Km of provincial roads, 14Km of rural roads in Central Province and 46Km of national roads, 100Km of provincial roads, 23Km of rural roads in Eastern Province under this project. In addition 50 small scale irrigation schemes from each North Central Province and Eastern Province and 70 medium and large scale irrigation schemes in North Central and Eastern Province will be rehabilitated.

The Project will be implemented by the Road Development Authority, Department of Irrigation, Provincial Road Development Authorities of North Central, Central, and Eastern Provinces, Provincial Departments of Irrigation in North Central and Eastern Provinces under the supervision of Department of National Planning, Ministry of Ports and Highways, Ministry of Irrigation and Water Resources Management and Ministry of Local Government and Provincial Councils.

The signing of Exchange of Notes pertaining to the above Loan took place today, at the Ministry of Finance and Planning. His Excellency Kunio Takahashi, Ambassador of Japan in Sri Lanka signed the Exchange of Notes on behalf of the Government of Japan while P B Jayasundera, Secretary, Ministry of Finance and Planning singed on behalf of the Government of Sri Lanka. A Loan Agreement was also signed between Government of Sri Lanka and Japan International Cooperation Agency (JICA) P B Jayasundera, Secretary, Ministry of Finance and Planning and Akira Shimura, 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

29th September, 2011

8/09/2011

Importation of Dairy Animals for increasing of milk production of Sri Lanka

The Mahinda Chintana Policy document has highlighted that the dairy industry will be promoted by introducing improved breeds, feed resources, better animal health, a well developed collection and processing network, good research and extension services with the aim of reducing the drain on the country's foreign exchange resources and supporting employment generation and family income.

Accordingly, arrangements have been made to increase the milk production of Sri Lanka by importing 4,500 dairy animals from Australia and develop farms belonging to National Livestock Development Board (NLDB) at Bopaththlawa, Nikaweratiya and Siringapatha. A project has been formulated for this purpose and it will be implemented in two Phases. Under Phase 1 of the project, 2,000 dairy animals will be imported and the Bopaththlawa farm will be developed at a total cost of US$ 12,944,058. The implementation of Phase 1 of the project will be carried out in 2 stages. Under Stage 1, it is expected to develop necessary infrastructure facilities at the Bopaththalawa farm and implement a pilot project for 9 months with importation of 500 dairy animals to the Boapaththalawa farm. Under Stage 2, it is expected to import the balance 1500 dairy animals to the Bopaththalawa farm after completion of the pilot projects based on the performance of the dairy animals imported under Stage 1. Under Phase 2 of the project, the balance 2,500 dairy animals will be imported and the Nikaweratiya and Siringapatha farms will be developed based on the performance of Phase 1 of the project.

The Cooperatieve Centrale Raiffeisen-Boerenleenbank (Rabobank) of Netherlands and the Export Finance Insurance Corporation (EFIC) of Australia have agreed to provide a loan in a sum of US$ 10,524,492 for implementation of Phase 1 of the project. The total cost of Phase 1 of the project is US$ 12,944,058 of which 81% of the project cost will be covered from the Rabobank and EFIC financing. The balance 19% of the project cost amounting to US$ 2,419,566 will be provided by the Rabobank of Netherlands.

The Loan Agreements for the above purpose were signed today by Dr. P.B. Jayasundera, Secretary, Ministry of Finance & Planning on behalf of the Government of Sri Lanka, Mr. John William Pacey, Chief Credit Officer, EFIC on behalf of EFIC and Mr. Han Bartelds, Vice President, Structured Trade and Export Finance, Rabobank on behalf of Rabobank, Netherlands. Ms. Kathy Klugman, H.E the High Commissioner of Australia in Sri Lanka also participated in the signing ceremony.

Ministry of Finance & Planning

Colombo

8th September 2011

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