The Ministry of Finance and Mass Media today (22) entered into two loan agreements with Asian Development Bank to borrow 350 million dollars for infrastructure development projects.
Of that 150 million dollars will be used for the development of 3400 km of rural roadways and 200 million dollars for the implementation of 100 MW Wind Power Generation Project in Mannar.
3,400 km of rural access roads inclusive of 340 km of National highways will be upgraded under the agreement signed, today for the Second Integrated Road Investment Program.
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.
The program will be implemented in 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 District in Western Province are being improved and maintained.
The total investment cost of the first tranche of this project is 172.1 million dollars.
ADB provides 150 million dollars and the Government Contribution will be 22.1 million dollars.
The proposed 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.
100 MW wind farm will be constructed in Mannar Island of the Northern Province under the proposed project.
In addition, wind park infrastructure will be developed including 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 256.7 million dollars of which 200 million dollars will be provided by ADB as a direct loan to CEB under a Treasury Guarantee.
The balance 56.7 million dollars will be financed by CEB.