Japan provides Rs. 35,300 mn for three projects

COLOMBO: The Japanese Government has pledged Yen 39,233 million (approximately Rs. 35,300 million) to Sri Lanka under its Official Development Assistance (ODA) loan scheme in support of development efforts of the country.

This is the largest annual yen loan package received from the Japanese Government up to now, states a Finance and Planning Ministry release said.

This ODA loan scheme is extended on an annual basis and this is the 38th of such loan packages. The loans are offered on concessionary terms and conditions and administered by the Japan Bank for International Cooperation (JBIC).

The loans are repayable in 40 years, inclusive of a grace period of 10 years and carry an interest rate of 1.5 per cent per annum.

The loan package supports three infrastructure projects. They are: Greater Colombo Urban Transport Development Project (Outer Circular Highway) - first phase; Water Sector Development Project; and Pro-Poor Rural Development Project.

These three projects are in line with the needs identified in the Mahinda Chintana: Vision for a New Sri Lanka - a 10- year Horizontal Development Framework 2006 - 2016, aimed at building modern infrastructure at national level and providing essential infrastructure facilities in the lagging regions.

Of this package, Japanese Yen 21,917 mn (approximately Rs. 19,725 mn) is allocated for Phase-1 of the Greater Colombo Urban Transport Development Project of the Outer Circular Highway.

The funds will be used to construct 12 km road section of the Outer Circular Highway (OCH) from Kottawa to Kaduwela which will connect the Southern Expressway at Kottawa and Colombo-Katunayaka Expressway at Kerawalapitiya.

This expressway will be a four-lane road which can be widened up to six-lanes in the future. It is further expected to develop three townships in Makumbura (Kottawa), Kaduwela and Kadawatha areas to relocate families and to achieve the maximum benefit from the project.

The road section from Kaduwela to Kadawatha of Outer Circular Highway is expected to be financed under the next year Yen Loan Package on a continuing basis. The Government plans to commission the Kaduwela-Kadawatha road section of Outer

Circular Highway by 2010. The project will be implemented by the Road Development Authority with the assistance of Urban Development Authority.

The second loan of Japanese Yen 3,231 (approximately Rs. 11,900 mn) is allocated for the Water Sector Development Project. The project consists of four components;

1) Greater Kandy Water Supply Project (Phase I Stage II)

The on-going water supply project provides water facilities only for 70 per cent of the identified population of the Greater Kandy area. The proposed stage II will provide water facilities for the remaining 30 per cent of the population.

2) Towns North of Colombo Water Supply Project (Phase II)

This is the second phase of ongoing Towns North of Colombo Water Supply Project. It is focused to lay the balance distribution lines left out from the areas implemented under Stage-I of the project and Muthurajawela and Pamunuwa areas which are being rapidly developed as an industrial zone. The proposed Phase II will have a coverage of about 250,000 people.

3) Greater Colombo Water Rehabilitation Project

In order to improve the water distribution facility in the areas of Colombo Central, it is expected to construct two new reservoirs for the Maligakanda and Elie House Reservoirs which were built in 1885 and 1905 respectively. It is also expected to enhance the water supply in Kottikawatte and Mulleriyawa areas.

4) Kandy City Waste Water Disposal Project

Under this component, the detailed designs will be undertaken for the proposed Kandy City Wastewater Treatment Plant and the sewerage collection system. The construction cost of the project will be financed by the Government of Japan under the next yen loan package.

The project will be implemented by the National Water Supply and Drainage Board. The third loan of Japanese Yen 4,085 mn (approximately Rs. 3,675 mn) is allocated for Pro-Poor Rural Development Project.

Under this project, it is expected to improve or rehabilitate both the national and provincial roads in economically backward areas in the districts of Moneragala, Badulla, Hambantota and Ampara. Around 145-150 roads with a total length of 650-700 km will be improved or rehabilitated in these districts.

These activities are expected to be completed within two years. The project will be complementary to the 'Maga Neguma' program of the Government.

The Ambassador of Japan Kiyoshi Araki has conveyed the official pledge to Dr. P. B. Jayasundera, Secretary, Ministry of Finance and Planning at the Ministry of Finance and Planning. R. A. Jayatissa, Deputy Secretary to the Treasury and Noriaki Sadamoto, Second Secretary of the Embassy of Japan also participated.