Germany provides Euro 74.3 m for development projects

Four financial and technical cooperation agreements were signed with the Government of the Federal Republic of Germany at the Ministry of Finance and Planning yesterday.

The total amount of the funds provided by the German Government under these four agreements in Euro 74.3 million of which 57 million is grant funds and he balance Euro 17.3 million is in concessionary loan funds.

Secretary, Ministry of Ministry of Finance and planning Dr.P.B. Jayasundera signed the agreements oh behalf of the Government and Ambassador Juergen Weerth signed on behalf of the German Government.

The first agreement is for a concessionary loan of Euro 17.3 million (approximately Rs. 20.9 billion) provided by the German Government through the KfW, the German Reconstruction Bank. The proceeds of the loan funds will be used for rehabilitation of Jaffna-Kilinochchi Transmission Line and promotion of Small and Micro Enterprises in North and East.

The second agreement is for a grant of Euro 21 million (approximately Rs. 25.4 billion) under the regular technical cooperation programme provided by the German Government through the GTZ, the German Agency for Technical cooperation.

The grant funds will be utilised for vocational training, enterprise promotion and rehabilitation measures in North and East.

The third agreement is for a grant of Euro 36 million (approximately Rs.43.6 billion) provided for the rehabilitation and reconstruction of tsunami affected areas. Tsunami grant funds will be used for technical cooperation, vocational training, housing, rehabilitation of infrastructure, education and promotion of micro, small and medium enterprises.