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| Friday, 21 March 2003 |
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JBIC to grant Rs.21,565 m to launch five major development projects By Chamitha Kuruppu The Japan Bank for International Cooperation (JBIC) will grant a loan of Rs.21,565 million to implement five major development projects in various sectors in the country. The Cabinet of Ministers who met on Wednesday approved a cabinet paper submitted by the Minister of Finance K Choksy to receive the loans from JBIC. The JBIC will grant a loan of almost Rs. 5,767 million for the implementation of the power sector restructuring program. The loan repayable in thirty 30 years is inclusive of a grace period of 10 years. The interest rate for the loan is 2.2% per annum. The loan will be released in two tranches during this year and will be utilised to support the funding requirement of the power sector restructuring program. By implementing the program the government expects to establish a power sector structure, which is capable of providing stable and high-quality power at a modest price by introducing competition, enhancing sector efficiency and improving transparency. The project is co-financed by the Asian Development Bank. A loan of nearly Rs.4,659 million will be granted by the JBIC to implement a Pro-Poor Economic Advancement and Community Empowerment Project. The project will achieve sustainable development of regional agriculture, enhance family income of the rural community and improve the soci- economic status of the people living in Anuradhapura, Kurunegala, Puttalam and Matale Districts and areas selected in the North and East provinces for implementation on a pilot basis. The major activities of the project are to rehabilitate irrigation systems in those areas and support services required. The project will be executed by the Ministry of Irrigation and Water Management and is expected to be completed by year 2010. The JBIC has approved another loan of nearly Rs. 2,278 million repayable in 30 years inclusive of a grace period of 10 years. The objective of the project is to connect the proposed Kerawalapitiya combined cycle power plant to the national grid to provide stable electricity and meet the demand growth of electricity . The project includes construction of a gas insulated switchyard at the plant site and addition of a switchyard to grid substation at Kotugoda, augmentation of Kotugoda Biyama transmission line and construction of the Kerawalapiliya - Kotugoda transmission line. The project will be implemented by the Ceylon Electricity Board and it is expected to be completed by the year 2006. The Government would on-lend the proceeds of the loan to the Ceylon Electricity Board on terms and conditions acceptable to the General Treasury Another loan of nearly Rs.7,438 million for the implementation of small- scale infrastructure rehabilitation and upgrading project has also been approved by the JBIC. The loan is repayable in 30 years, inclusive of a grace period of 10 years and carries an interest rate of 2.2% per annum. The objective of the Project is to contribute to the improvement of socio-economic conditions of people living in rural and urban areas through rehabilitation and upgrading of small-scale infrastructure facilities in water supply and sanitation, irrigation, roads, bridges and education. The projects, which have initially been identified for implementation under the Consolidated Fund, will be funded under this loan. A Project Management Unit to be established under the Ministry of Policy Development and Implementation, will execute the project in coordination with the other relevant line ministries and implementing agencies. The project is expected to be completed by year 2006. Approximately Rs. 1,423 million will be granted for the Plantation Reform Project -II which is repayable in 30 years inclusive of a grace period of 10 years. The interest rate for the loan is 2.2 % per annum. The project is expected to improve the living and working conditions of the estate workers and to ensure the long-term sustainability of the plantation sector. The project covers 15 districts where estates of Regional Plantation Companies are located. The proceeds of the loan will be used to implement a Worker Housing Loan Scheme and a comprehensive social development program for estate workers. The project is co-financed by Asian Development Bank. |
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