Exim to loan US$ 278.2 mn for Matara- Kataragama Railway Ext. Project

Vishmi Wijeratne

Export - Import (Exim) Bank of China are on concessional terms to provide a loan of US$ 278.2 million to finance the first phase of the Matara- Kataragama Railway Extension Project. According to a Ministry of Finance and planning report, out of the total loan amount US $ 200 will be provided under the preferential Buyers Credit Facility and the remainder of the loan will be provided under the Chinese government concessional loan facilities. The repayment period for the loan is reported to be 20 years with a five year grace period.

Phase 1 that this loan will facilitate will consist of a construction of 26.75 km long single line broad rail track from Matara to Beliatta, including culverts, bridges over rivers, viaducts required over the Nilwala river flood plain and many more constructions necessary for phase I This project is planned to be implemented in three phases. Under phase I, construction of railway line from Matara to Beliatta will be carried out. Phase II and phase III include the construction of railway lines from Beliatta to Hambantota and Hambantota to Kataragama respectively. According to an international report regarding the project, it was reported that this project will come to an end by the end of 2014. The extension will provide efficient transport to connecting cities from Colombo to Kataragama.

The project has taken afoot due to the forseen demand of transport that will increase due to the developments in the Southern Region and this project will certainly help meet the demands of transport.