ADB loan for water and sanitation project
US$ 85 million granted for Dry Zone:
The Asian Development Bank (ADB) has agreed to provide financial
assistance of US$ 85 million (Rs. 10 billion) for the implementation of
Dry Zone Urban Water and Sanitation Project.
The total cost of the project is US$ 113 million. The ADB assistance
includes a concessional loan of US$ 59.78 million, a grant of US$ 23.22
million and a further grant amounting to US$ 2 million from the
Netherlands Trust Fund for the Water Financing Partnership Facility. The
Government contribution for the fund is US$ 28 million.
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Finance and Planning Ministry Secretary Sumith Abeysinghe
and Asian Development Bank Vice President Xiaoyu Zhao
signing the grant agreement. |
The loan funds will be utilized for rehabilitation, expansion and
development of water and sanitation infrastructure in the Northern
Province and North Western province. Of the total cost of the project,
US$ 35 million will be allocated for the development of water and
sanitation facilities in Vavuniya and Mannar towns in the Northern
Province and the balance for the water supply schemes in the North
Western Province including Puttalam and Chilaw towns. The project will
also support decentralization of service delivery functions of the
National Water Supply and Drainage Board to regional offices and the
capacity development in water resources management, coordination and the
project management.
The project will be implemented by the National Water Supply and
Drainage Board under the supervision of the Water Supply and Drainage
ministry. The project is expected to be completed by 2013.
The loan and grant agreements for the project were signed today at
the Ministry of Finance and Planning. Secretary to the Ministry of
Finance and Planning Sumith Abeysinghe signed the agreements on behalf
of the Government of Sri Lanka and Vice President of Asian Development
Bank Xiaoyu Zhao signed on behalf of the ADB.
He is in Sri Lanka for a three-day visit to discuss ADB support for
the reconstruction and development in the Northern Province as well as
other ADB development programs. A project agreement relevant to the
implementation arrangement of the project was also entered into between
the ADB and the National Water Supply and Drainage Board. |
