Sri Lanka to get US$ 50 million loan from Japan for the Upper Kotmale Hydro Power Project
Wed, Mar 10, 2010, 11:48 pm SL Time, ColomboPage News Desk, Sri Lanka.
Mar 10, Colombo: Sri Lanka is to obtain a US$ 50 million (4.522 billion Japanese Yen) loan from the Japan International Cooperation Agency (JICA) to complete the Upper Kotmale Hydro Power Project.
President Mahinda Rajapaksa, as the Minister of Finance and Planning received the approval on Wednesday (10) from the cabinet to enter into a loan agreement with JICA.
The Upper Kotmale Hydro Power Project (UKHP) is being implemented under a loan amounting to Japanese Yen 33.265 billion extended by the Government of Japan in 2002. The construction works of the Upper Kotmale reservoir, power plant and other associated works are in progress and expected to be completed in 2011.
The new loan is sought to meet the additional funding requirement due to cost overruns and price escalations. The proceeds of the loan are to re-lent to theCeylon Electricity Board on terms and conditions laid down by the General Treasury.
The views of the Monetary Board of the Central Bank of Sri Lanka have already been sought on the monetary implications of this loan, the government said.
The project will be implemented by the Ceylon Electricity Board under the supervision of the Ministry of Power and Energy.
When completed, the run of river hydropower project with an installed capacity of 150MW will produce 409GWh energy per year.
The loan that carries an interest rate of 0.2 percent per year is repayable 40 years inclusive of a grace period of 10 years.