ADB loans US $ 210 million for national highways and water sector projects

LOAN: The Government and the Asian Development Bank (ADB) signed two loan agreements for US $ 210 million for the improvement of the national highways (US$ 150 million) and provision of drinking water and sanitation facilities for the people in urban and rural areas (US$ 60 million) in North Central, North -Eastern and Southern Provinces.

The proceeds of the national highways sector loan of US$ 150 million will be utilised for widening and rehabilitation of 350 km of selected roads which includes improving and replacing of bridges, drainage, culverts and providing weight stations.

The selected roads for improving are: Anuradhapura -Puttalam (70 km), Habarana- Kantale- Trincomalee (84 km), Udatenna-Mahiyangana (40.8 km), Thalgodapitiya - Dombalwela (27 km), Katukurunda - Nagoda (2.7 km), Southern highway links to Aluthgama (10.5 km), Hikkaduwa (13.3 km), Matara (4.0 km).

In addition, the project will support the land acquisition and resettlement activities for four Colombo link roads: Kandy road from Kiribathgoda to Nittambuwa (26 km), Awissawella Low Level road from Orugodawatta to Ambatale (8 km), High Level road from Kirulapone to Godagama (20 km) and Horana road from Pamankada to Horana (28km).

Widening of these roads is vital to provide adequate capacity for road links to the proposed Outer Circular Highway and the Southern Expressway.

The Government is contributing US$ 58 million to meet project's total estimated cost of US$ 208.0 million. The project will be executed by the Ministry of Highways and implemented by the Road Development Authority (RDA). The project is expected to be completed by 2010.