ADB lends US$ 250m

Ramani KANGARAARACHCHI

The Asian Development Bank (ADB) a key development partner of Sri Lanka will provide direct assistance under its public sector lending operations of US$ 250 million each year under the new Country Partnership Strategy, which is now being finalised.

Country Director ADB Richard Vokes who was a guest of honour at the opening of “Construct 2008” Exhibition recently, said current support to Sri Lanka consists of an ongoing portfolio of 50 loans with a net loan amount of around US$ 2.1 billion and contracts have been awarded for almost US$ 1.2 billion already. Vokes said that new strategy is designed to crowd-in further funds through Public-Private Partnerships.

The bulk of ADB assistance is for civil works and equipment procurement in large and small infrastructure such as roads, ports, fisheries harbours, water supply and sanitation works, buildings of various kinds, including at the local community level.

Vokes said the private sector is a key source of investment, in all sectors such as in power generation, including small and medium hydro power projects, construction of buildings and the telecom sector.

Therefore development of the construction industry should be a priority for the country where ADB certainly supports,” he said.

Referring to the challenges in the industry he said that delay in payment is a major challenge that domestic contractor faces and ADB makes direct payments to contractors for their interim payment certificate if the value is more than US$ 50,000.

Recollecting an achievement of a domestic contractor he said that evidence of growing the strength of construction industry can be seen by the fact that at the end of 2007, a domestic contractor was awarded on its own merit, a major road rehabilitation contract that had been bid through international competitive bidding procedure.