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$32 m WB loan for Puttalam's infrastructure development

COLOMBO: The World Bank will provide a soft loan of US$ 32 million to implement infrastructure and housing development projects targeting people in the Puttalam district, Treasury Secretary Dr. P.B. Jayasundera said.

The project would finance housing, drinking water, sanitation and environment improvement for 25,000 internally displaced families and other families living in Kalpitiya, Mundal, Puttalam and Vanathavilluwa Divisions of Puttalam district.

In addition, 100 km of Pradeshiya Sabha roads will also be constructed under the project, he said.

The loan repayment period is 20 years including a 10-year grace period with a 0.75 service charge. The project has two main components.

The infrastructure development component of the project consists construction of 100 km of roads to link the internal roads with the main highways, development of 34 water supply schemes to provide drinking water to 16,875 families representing both Internally Displaced Persons (IDPs) and non-IDPs living in 34 Grama Niladhari Divisions and provision of sanitation facilities and environmental mitigation to control the threat of flooding through improves drainage system.

Under the Housing Assistance component reconstruction of 9,685 houses through the transfer of cash grants to selected eligible beneficiaries will be undertaken.

The Ministry of Resettlement and Disaster Relief Services will be the Executing Agency for the project.

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