(UTV|COLOMBO) – The Finance and Mass Media Ministry on Wednesday (22) entered into two Loan Agreements with the Asian Development Bank (ADB) to borrow USD 150 million for the development of 3,400 km of rural roadways and USD 200 million for the implementation of 100 MW Wind Power Generation Project in Mannar Island.
According to the Government’s recent economic policy statement, development of the rural economies is one of the priorities in achieving sustainable development and therefore, the Government is investing more on rural infrastructure development to uplift the livelihood of rural people.
Around 3,400 km of rural access roads inclusive of 340 km of National highways will be upgraded under the agreement signed for the Second Integrated Road Investment Programme.
The significance of this road project is that these roads will be developed to suit all weather conditions and will improve 340 km of National roads with the aim of building up better connectivity between rural communities and socio economic centers.
Improving the capacity of road agencies with respect to safeguards, road safety, maintenance, research capacity and road design and construction is another component of the programme. The programme will be implemented in the Northern, Eastern, Uva and Western Provinces.
Under the first phase of this programme, 3,108 km of rural access roads and 248 km of national roads in Southern, Central, Sabaragamuwa, North Western, North Central Provinces and Kalutara Districts in the Western Province are being improved and maintained.
The total investment cost of the first tranche of this project is USD 172.1 million. The ADB provides USD 150 million and the Government Contribution will be USD 22.1 million.
Current energy policy focuses on diversification of power generation through Non-conventional Renewable Energy Resources to improve the country’s energy security as well as the environment.
Implementation of the Wind Power Generation Project will support the Government’s objective of achieving 20% of the total power generation through non-conventional power generation by 2020 by enhancing clean power generation.
A 100 MW wind farm will be constructed on Mannar Island off the Northern Province under the proposed project. In addition, wind park infrastructure will be developed including the Wind Park’s internal medium voltage infrastructure, internal cabling and access roads; establishment of a renewable energy dispatch control center for the forecasting, controlling and managing intermittent 100 MW wind power generation.
The total investment cost of this project is USD 256.7 million of which USD 200 million will be provided by the ADB as a direct loan to the CEB under a Treasury Guarantee. The balance USD 56.7 million will be financed by the CEB.
Finance and Mass Media Secretary Dr.R.H.S.Samaratunga on behalf of the Government of Sri Lanka and ADB Country Director Sri Lanka Resident Mission on behalf of the ADB, signed two Loan Agreements at the Finance and Mass Media Ministry yesterday.
Further, the Chairman and Vice Chairman of the Ceylon Electricity Board and Ms. Sri Widowati, ADB Country Director Sri Lanka Resident Mission signed a loan agreement to obtain USD 200 mn from the ADB for the implementation of Wind Power Generation Project. Finance and Mass Media Minister Mangala Samaraweera and ADB Vice President Wencai Zhang also participated.
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