Iranian funded electrification project to light up 1,000 more villages

Sha JAMALDEEN in Tehran

Iran has granted 75 percent of the total cost of Euro 87 million (US$ 106 million) on concessionary credit terms to Sri Lanka to fund the Rural Electrification Project planned to provide electricity to about 1,000 rural villages and due to be inaugurated on Monday August 9, 2010.

The project is expected to provide electricity to over 250,000 households covering several provinces in the island including the North.

The electrification project will be inaugurated by Economic Development Minister Basil Rajapaksa at Yapahuwa, Kurunegala on the invitation of Power and Energy Minister Patali Champika Ranawaka.

Former Power and Energy Minister John Seneviratne and Ministry Secretary M.M.C. Ferdinando visited Iran twice to negotiate the concessionary loan package with the Export Development Bank of Iran. Sri Lanka's Ambassador to Iran M.M. Zuhair, External Resources Department and Ceylon Electricity Board officials assisted in clinching the concessionary package that would bring electricity to a wider sector of the rural population.

The Export Development Bank of Iran is financing the project and will be executed by the Ceylon Electricity Board with the Tavanir Electricity Organization of the Ministry of Power and Sunir Co. of Iran.

Earlier, Iran funded the US$ 450 million Uma Oya Hydro Power and Irrigation Project that will generate 120 MW electricity and provide water for a projected 15,000 hectares of land.

The Uma Oya Project is at the initial stage of execution, officials said.