Kuwait Fund provides US$ 20 mn

The Kuwait Fund for Arab Economic Development will provide a loan equivalent of US$ 20 million (Rs. 2000mn) to support post-tsunami economic recovery activities in Sri Lanka.

This loan is provided on highly concessional terms at an interest rate of 0.5% per annum repayable in 25 years including a grace period of 5 years.

The proceeds of the loan will be used to implement the project on Strengthening of Tertiary Education and Administrative Infrastructure in Tsunami Affected Areas. This project is implemented by the Ministry of Education, and the Ministry of Public Administration and Home Affairs.

The project will assist (a) the construction work and provision of necessary equipment for the (i) Advanced Technical Institutions of Jaffna, Galle, Labuduwa, Ampara and Trincomalee; (ii) student housing facilities at the medical faculties of the Jaffna University and the Galle Campus of the Ruhuna University; (iii) Information Technology Centres at the South-Eastern University in Oluvil and Eastern University in Batticaloa; and (b) the construction work and provision of necessary equipment and field vehicles for the Regional Administrative Offices in 57 Divisions in 13 tsunami affected Districts.

The loan agreement for the Strengthening of Tertiary Education and Administrative Infrastructure in Tsunami Affected Areas was signed on Friday at the Ministry of Finance and Planning by Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning on behalf of the Government of Sri Lanka and Abdul Wahab Al-Bader, Director General, Kuwait Fund on behalf of the State of Kuwait.

Regional Manager for East South Asia and Pacific Countries, Kuwait Fund Abdul Kareem Al-Mutawa also participated in the signing ceremony.