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| Wednesday, 26 March 2003 |
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The Japan Bank for International Co-operation (JBIC) has granted a concessionary loan package of Rs. 26,070 million for six development projects in Sri Lanka. The signing of the Exchange of Notes took place yesterday at the Ministry of Finance with the presence of Finance Minister, K. N. Choksy and Minister of Power and Energy, Karu Jayasuriya. Treasury Secretary, Charitha Ratwatte signed on behalf of the ministry whilst Japanese Ambassador Seiichiro Otsuka signed on behalf of the JBIC. This is the 35th concessional loan package extended by the Government of Japan. The present package is repayable in 30 years inclusive of a 10 year grace period with a concessional interest rate of 2.2 percent per annum. The six projects to be benefited are the improvement of provincial roads, provincial irrigation systems, power sector, estate housing, community enhancement and for the first time the financing of rural small-scale development activities. The largest sector of the loan package goes towards development of rural small-scale activities. This would include enhancement of provincial education and training in the area of self-employment. The upgrading of existing projects will also be financed. Japan is the largest single contributor towards the generation of power in Sri Lanka with almost 22 percent of power generation being attributable through Japanese aid. The present proceeds will be merged into ongoing power sector restructuring projects, financed jointly by Japan and the ADB. The connecting of the Kerawalapitiya combined power plant to the national grid will also be effected. This is considered amongst the more important projects to meet the increasing demand for electricity. |
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