Infrastructure development:

Japan grants 20,577 m Yen

Lakshmi DE SILVA

Japan has granted 20,577 million Yen ( Rs.25,721 million) as a soft terms loan for major infrastructure development, Rural and Provincial Road Development and Upper Kotmale Hydro Power project stage II, Cabinet Spokesman Professor G. L. Peiris said yesterday.

Of this aid package given by the Japanese International Cooperation Agency 4,552 million Yen was given at 0 .02 percent annual interest with a grace period of 10 years, repayable in 40 years, he said.

The other package of aid 4,904 million Yen was for water supply projects in the Eastern Province at an interest rate of 0.65 percent with a ten year grace period to be repaid over 40 years. The aid package also covers Provincial Development Projects. Sabaragamuwa and Central Provinces receive 9,156 million Yen with a 1.4 percent interest rate with a 10 year grace period to be repaid over thirty years.

Aid of 3,965 million Yen with a ten year grace period and interest rate of 0.65 percent to be repaid in 40 years was also given for Rural and Provincial Road Development, he said.