Cabinet decisions

Rehabilitation of Laxapana and Wimalasurendra

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa in his capacity as the Finance and Planning Minister to enter into an export credit agreement with Calyon of France and loan agreement with Hatton National Bank to finance the rehabilitation of the new Laxapana and Wimalasurendra hydro power plants.

The Government will borrow the foreign portion not exceeding the equivalent in USD of a maximum amount of EUR 32,805,750 local portion not exceeding the equivalent in USD of a maximum amount LKR 531,600,000 and Credit Insurance Premium up to the equivalent in USD of a maximum estimated amount of EUR 3,598,791 and maximum estimated amount of LKR 58,316,520.

The Government will also enter into a Loan Agreement with HNB to borrow a total amount of USD equivalent of EUR 5,789,250 and a sum of LKR 104,400,000.

The Government will use the proceeds of the Export Credit and Loan Agreements to finance the Contract entered into between Ceylon Electricity Board and Alstom Hydro France to implement the rehabilitation of New Laxapana and Wimalasurendra Power Stations and will on-lend the proceeds of the Loan to CEB on terms acceptable to the Treasury.

Padeniya-A'pura Road to be upgraded

The Cabinet approved a memorandum submitted by President Mahinda Rajapaksa in his capacity as the Finance and Planning Minister to enter into a Loan Agreement with the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank (Eximbank) of Korea to obtain a loan in Korean Won equivalent of USD 55 million to finance the improvement of Padeniya-Anuradhapura Road.

The project includes widening and improvement of 80.8 km long Padeniya-Anuradhapura Road with two lane facility and four lane facility at town sections.

Deduru Oya reservoir project

The Cabinet has granted approved a memorandum submitted by Irrigation and Water Management Minister Chamal Rajapaksa to acquire a land of 12 acres to the Divisional Secretary, Kobeigane from the Telehara Farm belonging to the National Livestock Development Board in the Kobeigane Divisional Secretary Division for the re-settlement of persons displaced due to the Deduru Oya Reservoir Project.

The Deduru Oya Reservoir Project consists of a reservoir with a capacity of 75 MCM built across the Deduru Oya, a Hydro Power Unit with an installed capacity of 1.5 MW, a channel network 100 km long to supply water to about 27,000 acres of land for both the Yala and Maha season in Deduru Oya - Mee Oya Basins.

In addition to providing water for irrigation, the reservoir will also provide drinking water to the Kurunegala and Puttlam Districts.

The project is planned to be completed in 2010 and Rs. 720 million has been made available in the Budget for 2008.

Law to establish 'National Institute of Occupational Safety and Health'

The Cabinet has approved a memorandum submitted by Labour Relations and Man Power Minister Athauda Seneviratne to implement the drafted laws for the 'National Institute of Occupational Safety and Health'.

Accordingly the bill will be published in the Gazette and it will be placed in the Order Paper of Parliament as per accepted procedure.

Lanka Government Network Stage 2 project

The Cabinet has approved a memorandum submitted by President Mahinda Rajapaksa in his capacity as the Finance and Planning Minister to enter into a Loan Agreement with the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank of Korea to obtain a loan in Korean Won not exceeding US$ 6,653 million to finance the Lanka Government Network Project State 2 on a 1.5 per cent annual interest rate for a repayment period of 30 years including a 10 year grace period.

Under Stage I of the above project, 325 Government agencies were connected to the Lanka Government Network. The objective of Stage II is to expand the Lanka Government Network by connecting an additional 150 government agencies.

The Information and Communication Technology Agency (ICTA) under the Presidential Secretariat will be the executing agency for the project.

Dr. W.S. Palitha Padmakumara's family compensated

The Cabinet has approved a memorandum submitted by the Healthcare and Nutrition Minister Nimal Siripala de Silva to grant Rs. 5 million to the family of the late Dr. Palitha Padmakumara who was recently gunned down by a group of armed men while at his official quarters.