Japan provides Rs 44 billion for two projects

The Japanese Government has provided Japanese Yen 33 billion (approximately Rs 44 billion) to Sri Lanka under its annual Yen Loan Package to assist the country's development efforts. It is offered on concessionary terms and administrated by the Japan International Cooperation Agency (JICA).

This is the 41st Yen Loan Package and it will support the financing of two projects including Greater Colombo Urban Transport Development Phase 2 (II) and Vavuniya Kilinochchi Transmission Line Project (II).

Japanese Yen 31,688 million (approximately Rs 42,145 million) will be provided for Greater Colombo Urban Transport Development Phase 2 (II).

It will utilized for construction of 8.9 km length of road section from Kaduwela to Kadawatha of Outer Circular Highway (OCH) to ease traffic congestion in the Colombo Metropolitan Region and improve the connectivity with Southern Expressway, Colombo - Katunayake Expressway and other national roads connected to Colombo City. The length of the Outer Circular Highway (OCH) will be 29 km and financial assistance for the construction of Southern Section of OCH between Kottawa to Kaduwela has already been provided by the Japanese Government in 2007 and 2008. Vavuniya Kilinochchi Transmission Line Project (II) will reinforce the transmission network in the Northern area of the country, by reconstructing the 132 KV transmission line from Vavuniya to Kilinochchi and constructing grid substation at Kilinochchi.

It is also ensured to provide reliable, adequate and efficient electricity supply to consumers in the Northern Province. Japanese Yen 1,422 million (approximately Rs.1,891 million) will be utilized for this project.

The signing of Exchange of Notes pertaining to the Yen loan package took place yesterday at the Finance and Planning Ministry. Japanese Ambassador in Sri Lanka Kunio Takahashi signed the Exchange of Notes on behalf of the Government of Japan while P B Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka.

Loan Agreements were also signed by P B Jayasundera, Secretary, Ministry of Finance and Planning and Akira Shimura, Senior Representative of JICA Sri Lanka Office on behalf of the Government of Sri Lanka and JICA respectively.