Loan facilities to local bodies

Rafik JALALDEEN

The Local Government and Provincial Council Ministry with the association of the Asian Development Bank introduced a program to provide loan facilities to Local Government Institutions to develop infrastructure facilities at regional level, a Ministry spokesman said.

He said this project will be implemented under the supervision of the Ministry to fulfill needs of the people for their daily routine of life. He said the loan facility will be provided on the basis of estimates accompanying detailed reports of the project furnished by the respective local government institution.

The loan is on the basis of 60 percent non repayable grants for Pradesiya Sabha, 50 percent for Urban Councils and 40 percent for Municipal Councils. "Around seven percent of cost of project will have to be borne by the Local Council themselves. Another nine percent of interest will be charged on the loan. The period of repaying the loan is 12 years with two year grace period," he said.

He noted that the loan will have to be utilized for improving community water supply project, solid waste management, developing the community health facilities, building libraries and children's parks, storm water drainage system, road development and building sewerage.

The ADB has provided Rs.5,000 million for this project. The Government would bare the cost of Rs.1,200 million.

Rs 5,000 million has already been granted to 113 local councils under this project.