World Bank provides additional Rs 4.4 bn for the development  of Renewable Energy Sector

 The World Bank has provided a loan of Special Drawing Rights 26.3 million (approximately Rs 4.4 billion) as additional financing for the on-going renewable energy promotion efforts of the Government. This additional financing was provided as a result of the resounding success of the World Bank funded Energy Services Delivery project and the follow-on Renewable Energy for Rural Economic Development Project.

The additional financing is aimed at improving the quality of rural life by providing off-grid electricity to remote rural communities. This will help installation of 50 MW grid connected electricity power generation capacity, provision of direct electricity access to 60,000 households and 500 rural small and medium enterprises and public institutions directly through off grid systems such as solar, community hydro and bio-mass.

 This is an interest-free loan with a twenty   year repayment period. Ministry of Finance & Planning will be the Executing Agency for the Project while DFCC Bank continues to act as the Administrative Agency for the additional financing. The DFCC Bank is expected to provide necessary project support by means of project operation and provision of technical assistance to address renewable energy sector related issues, capacity building of stakeholders and awareness creation.

 The Agreement in this effect was signed today in the Treasury by Dr. P. B. Jayasundera, Secretary, Ministry of Finance and Planning and Ms. Naoko Ishii, Country Director of the World Bank on behalf of the Government of Sri Lanka and the World Bank respectively.

Ministry of Finance and Planning
, Colombo 01  

18/12/2007

    Development of Education Sector and Small and Medium Enterprises

The Government of Sri Lanka and the Asian Development Bank (ADB) signed two agreements today for US $ 130 million to improve quality, relevance, effectiveness and equity of access to secondary and tertiary education under the Education for Knowledge Society Project (US$ 80 million) and accelerate the development of Small and Medium Enterprises located outside the western province under the Small and Medium Enterprise Regional Development Project (US$ 50 million).

 The total investment for the Education for Knowledge Society Project is US$ 105.3 million and it comprises of US$ 65 million loan and US$ 15 million grant from the Asian Development Bank and US$ 25.3 million from the Government of Sri Lanka.

These funds will be utilized for upgrading 150 provincially administered secondary schools in the poorest administrative divisions under the “Isuru” schools programme of the Government enabling them to offer advanced level science streams. Facilities for teaching in key subjects such as Information and Communication Technology (ICT), English and Technical subjects will be improved. Computers and internet facilities for 2125 schools and 15000 scholarships for poor students will also be provided.

 In addition, the project will support Government reforms in competency based education through the development of curriculum, instructional materials, performance standards and teacher training.  The Center of Excellence in English Education (CEIEE) will be established in Peradeniya to improve the quality of English language teaching while Sri Lanka institute of Advanced Technological Education (SLIATE) will be upgraded to deliver more market responsive tertiary education.

 Integrating the HIV/AIDS and Health Education in the secondary school curriculum and Training of trainers and secondary school teachers in HIV/AIDS and Health Education will also be funded under the project.

 The project will be executed by the Ministry of Education through the Ministry of Higher Education, Provincial Department of Education in all provinces, National Institute of Education and National Evaluation and Testing Service. All project activities are expected to be completed by 2012.

 The total investment for the Small and Medium Enterprise Regional Development Project is US$ 88.89 million. Of this amount, the Asian Development Bank provides US$ 50 million. The Participating Financial Institutions and Small and Medium Enterprises will finance US$ 16.67 mn and US$ 22.22 mn respectively.

 These funds will be used for on-lending to Small and Medium Enterprises (SMEs) located outside the Western province, through the DFCC, NDB, Commercial and Sampath Banks in order to accelerate SME’s development  by improving their access to credit, creating SME value chain clusters, mainstreaming best practices in SME financing and improving access to business development services for SMEs.

The project will be executed by the Ministry of Finance and Planning, through Central Bank of Sri Lanka and expected to be completed by 31^st December 2010 .

 Secretary, Ministry of Finance and Planning, Dr. P.B. Jayasundera, on behalf of the Government of Sri Lanka and the Country Director of Asian Development Bank, Mr. Richard W.A. Vokes signed the loan and financing agreements. A Project Agreement was also entered into between the ADB and the DFCC, NDB, Commercial and Sampath Banks.

 Ministry of Finance and Planning
Colombo 01                                                                    

27 August 2007

Japan Provides Grant Assistance of Rs. 880 million (Japanese Yen 977 mn) for Improvements at the Department of Meteorology and the Sigiriya Museum

ADB Provides US $ 13.5 million for Water Supply in Polonnaruwa
The Government of Sri Lanka and the Asian Development Bank (ADB) today signed a supplementary loan agreement for US $ 13.5 million (Approximately Rs. 1,480 million) to meet the additional funding requirement for completion of the Secondary Towns and Rural Community-Based Water Supply & Sanitation Project.

The project is aimed at providing drinking water and sanitation facilities for the people in the urban areas of Batticaloa , Muttur, Polonnaruwa, Hambantota and the rural areas in the North Central and Batticaloa in North -Eastern Provinces. The additional funding of US $ 13.5 million will be used for the implementation of project activities in the urban areas of Polonnaruwa district. Under this component, 85,000 people in urban areas will gain access to piped water supplies and 3,000 people will have access to improved sanitation facilities and better understanding of hygiene. The project is expected to be completed by 2009.

The project is being implemented through the National water Supply and Drainage Board under the supervision of Ministry of Water Supply & Drainage.

Secretary, Ministry of Finance and Planning, Dr. P.B. Jayasundera signed the loan agreement on behalf of the Government of Sri Lanka while Country Director, Asian Development Bank (ADB) Resident Mission in Colombo, Mr. Richard W.A. Vokes signed on behalf of the ADB.

Ministry of Finance and Planning
Colombo 01

French Assistance for Development of Construction Industry
The Government of France has agreed to provide a concessionary loan up to Euro 10 million for development of Construction Industry in Sri Lanka.

The objective of the project is to strengthen the capacity and improve the ability of the Construction Industry to facilitate its participation in rehabilitation of tsunami damaged infrastructure expeditiously.

Out of Euro 10 million Euro 9 million (Rs.1170 mn) will be provided as credit to the domestic construction industry through the Central Bank of Sri Lanka. This credit facility can be used for purchase of construction equipment and also for working capital requirements of the small and medium entrepreneurs in the sector. The Central Bank of Sri Lanka will channel the credit funds through commercial banks and leasing companies registered with it.

The balance Euro 1 million will be provided to strengthen the management competence and technical capacity of the employees in the construction sector by contributing to the establishment Advanced Construction Training Academy (ACTA) by the National Construction Association.

The signing of the Agreement for the credit facility took place today at the Ministry of Finance and Planning. Mr. Jean Bernard Maucor, Resident Representative of Agency Francaise de Development (AFD) signed the Agreement on behalf of the French Government and Dr. P.B. Jayasundera, Secretary to the Ministry of Finance and Planning on behalf of the Government of Sri Lanka. The Ambassador for France in Sri Lanka H.E. Michel Lummaux has also attended this occasion.

Ministry of Finance and Planning
Colombo 01

A Loan of US $ 300 million from the Asian Development Bank for the implementation of Colombo Port Expansion Project
The Government and the Asian Development Bank (ADB) today signed a loan Agreement for US$ 300 million to develop the Colombo Port under the Colombo Port Expansion Project11:46 AM 4/25/2007. 

The total investment cost of the project is US $ 780 million of which US$ 480 million will be financed by the public sector and the balance US$ 300 million by the private sector. Of the public sector component the Asian Development Bank provides US$ 300 million and the Government of Sri Lanka contributes US$ 180 million. The balance amount of US$ 300 million will be borne by the private sector for the construction of the first container terminal under a concessionary Agreement.

 The objective of the project is to promote the country’s economic growth by improving the competitiveness of Sri Lanka in international trade through expansion of the Colombo Port using public-private partnership to maintain its status as a regional transshipment hub port.

The public sector finance will be utilized for construction of harbour infrastructure facilities. It includes construction of the breakwater, the dredging of approach channels and harbor basin, relocation of the submarine oil pipeline, construction of ancillary facilities as well as the provision of navigational aids. The construction of the first container terminal and procurement of associated handling equipment will be done through the private sector financing. The Government will select the concessionaire for at least the first two terminal components through open competitive bidding.

Sri Lanka Ports Authority (SLPA) will be the Implementing Agency for this project under the supervision of the Ministry of Ports and Aviation. The project will be completed by 2010.

Up to now, the Government has entered into loan and grant agreements to the value of US$ 719 million. Of these commitments, US$347 million from Japan for the implementation of Pro -poor rural development project, Greater Colombo Transport Development Project and Water Sector Development Project, US$ 17 million each from Spain and Germany, US$ 13 million from Austria, US$ 12 million form the Netherlands and US$ 12 million from UN agencies were received. Total commitments expected from the ADB in the year 2007 is US$ 515 million. Colombo Port Expansion Project is one of the projects that earmarked under the ADB expected commitments.

Secretary, Ministry of Finance and Planning, Dr. P.B. Jayasundera signed the loan agreement on behalf of the Government while Country Director, ADB , Mr. Richard W.A. Vokes signed on behalf of the ADB. A Project Agreement was also entered into between the ADB and the SLPA.

Ministry of Finance and Planning
Colombo 01.

Japan Provides a Grant of Rs. 1,380 million
The Government of Japan has provided a grant of Japanese Yen (J¥) 1,530 million (approximately Rs. 1,380 million) for two projects, under its Grant Aid Programmes. 

One grant amounting to J¥ 1,200 mn (approximately Rs. 1,080 mn) is provided under the general Non-Project Grant Aid Programme. The purpose of the grant is to contribute to the promotion of economic development efforts through balance of payment support.  This is the third grant offered under this programme to Sri Lanka by the Government of Japan. The proceeds of the grant will be used to import goods as agreed upon between the two governments. The proceeds of the previous grant of J¥ 800 mn offered in November 2004 have been used for the importation of around 20,000 metric tons of fuel oil by the Ceylon Petroleum Corporation.

 The second grant of J¥ 330 mn (approximately Rs. 300 mn) is provided under the Japanese Food Production Programme. The proceeds of the grant will be used to purchase agricultural machinery and equipment which will help to increase the productivity in the agriculture sector in Sri Lanka. These machinery and equipment will be made available both to the under privileged farmers and also to the Department of Agriculture for its seed production activities which in turn will facilitate improving the quality of agricultural produce of the targeted farmers. The Government of Japan has been providing assistance under the Food Production Programme annually to Sri Lanka since 1977.

Part of the value of the goods imported under these grants will be deposited as counterpart funds in two separate Special Accounts which will be utilized to finance projects falling within the Ten Year Development Vision announced by the Government, thereby promoting socio economic development in Sri Lanka.

The signing of Exchange of Letters pertaining to these grants took place today, at the Ministry of Finance and Planning.  His Excellency Kiyoshi Araki, Ambassador of Japan in Sri Lanka signed the Exchange of Letters on behalf of the Government of Japan while Dr. P B Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka.

Ministry of Finance and Planning
Colombo 01.

01/03/2007

Austrian Assistance for the Rehabilitation and Upgrading of Southern Catchment of the Grater Colombo Sewerage System
The Government of Sri Lanka and the Bank Austria Creditanstalt of Austria has entered into an Agreement today for Rehabilitation and Upgrading of Southern Catchment of the Greater Colombo Sewerage System.

The Government of Austria offered Euro 10.7 million under its concessional credit scheme for the project.  Construction of a new pumping station at Wellawatta, rehabilitation and upgrading of sewerage lines of Galle road, Duplication road, Kirulapane and Marine drive will be attended by this project.  The work of the project will complete within 2½ years.

Project will be implemented by the National Water Supply and Drainage Board.

Mr. R.A. Jayatissa, Deputy Secretary to the Treasury signed the Agreement on behalf of the Government of Sri Lanka and Mr. Htun Aung, Senior Advisor and Senior Manager Ms Susanne Kunitz signed on behalf of Bank Austria Creditanstalt.

Ministry of Finance and Planning
Colombo 01.

Tender Notice No NPTSL-04-078