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| Thursday, 5 February 2004 |
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JBIC provides yen 33.63 b for Lanka's development projects Japan's Official Development Assistance (ODA) through the Japan Bank for International Cooperation (JBIC) has provided Japan yen 33.63 billion for development projects in Sri Lanka during the financial year 2002 JBIC's ODA Loan Report 2003 stated. These loans included the power sector restructuring project, and the plantation reform projects. The projects also rehabilitate irrigation facilities and implement income-generating programs in the North Western, North Central and Central provinces and also covers part of the North and East provinces as pilot areas. This was in response to the ceasefire agreement. An ODA loan was also provided for the plantation Reform project, which aims at developing sustainable agriculture and eventually reducing poverty by rehabilitating cascading-type irrigation reservoirs. The project also provided training to raise the awareness of provincial government officials and farmers organisations so that farmers will be able to continue to repair, operate and maintain reservoirs on their own after the completion of the project. The rehabilitation of the reservoir system is also essential for the return and resettlement of refugees who were displaced from these provinces. The project also includes a micro finance component whose primary aim is to increase the farmer's income. In addition the "NGO Facilitation Fund will be stabilised under the project. This fund supported by proceeds of the ODA loan enables the Sri Lankan Government to strengthen ties with NGOs operating in the target areas. ODA loans were also provided to promote the introduction of a competitive mechanism in the power sector in order to secure a stable, low cost and a high quality power supply over a long period. In addition ODA loans were provided for the other projects including the provincial road improvement project which will contribute to improving transport efficiency and invigorating economic activities in the Central and Sabaragamuwa by rehabilitating provincial roads and bridges and by strengthening operation and maintenance capabilities of the relevant authorities. In certain cases, Japan has undertaken infrastructure projects, such as roads, bridges, and telecommunications. The Ministry of Foreign Affairs implements Grant aid, with the assistance of the Japan International Cooperation Agency (JICA), the report stated. Japan provides grant aid mainly to countries that have a relatively low income among the developing countries and regions. Grant aid is primarily channelled to support basic human needs (BHN) (such as medical services, public health, water supply, and rural and agricultural development) and human resources development. ODA Loans make development funds available to developing countries at low interest rates and with long repayment periods. These loans provide funds to develop and improve the economic and social infrastructure necessary to support self-help efforts and sustainable economic development for developing countries. JBIC's Overseas Economic Cooperation Operations are in charge of the major part of ODA loans. The purpose of Japan Bank for International Cooperation is to contribute to the sound development of Japan and the international economy and community through undertaking lending and other financial operations, for the promotion of Japanese exports, imports or Japanese economic activities overseas, for the stability of international financial order and for economic and social development or economic stability in developing areas in accordance with the principle that it shall not compete with commercial financial institutions. (IR) |
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