Department of External Resources

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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