Rs. 35 b from Japan for 3 projects

COLOMBO: The Government of Japan has provided Japanese Yen 39,233 million (around Rs. 35,300 million) to Sri Lanka under its Official Development Assistance (ODA) loan scheme for three infrastructure projects, the Japanese Embassy said yesterday.

This is the largest annual yen loan package received from the Government of Japan up to now.

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 30 years, inclusive of a grace period of 10 years and carry an interest rate of 1.5 % per annum.

The 38th loan package supports three infrastructure projects. They are; (i) Greater Colombo Urban Transport Development Project (Outer Circular Highway) - First Phase, (ii) Water Sector Development Project, and (iii) 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 Ten Year Horizon Development Framework 2006 - 2016, aimed at building modern infrastructure at National Level and providing essential infrastructure facilities in the lagging regions.

The Greater Colombo Urban Transport Development Project is the largest recipient project of the package with an allocation of Japanese Yen 21,917 mn (around Rs. 19,725 mn) allocated for Phase - I.

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

The second loan of Japanese Yen 13,231 (approximately Rs. 11,900 mn) is allocated for the Water Sector Development Project. The project consists of four components; The third loan of Japanese Yen 4, 085 mn (around Rs. 3,675 mn) is allocated for Pro-Poor Rural Development Project.

The objective of the project is to mitigate regional inequalities by enhancing accessibility through rehabilitating and upgrading of national and provincial roads in economically backward areas in the districts of Monaragala, Badulla, Hambantota and Ampara.

Around 145 - 150 roads with a total length of 650 - 700 km will be improved or rehabilitated in these districts.

The signing of Exchange of Letters pertaining to the 38th Yen Loan Package took place at the Ministry of Finance and Planning. Nobuaki Ito, Charge d’ Affaires of the Embassy of Japan in Sri Lanka signed the Exchange of Letters on behalf of the Government of Japan while Dr. P. B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government.