Nov 19, Colombo: Sri Lanka has received an additional US$ 98 million loan from the Asian Development Bank (ADB) to develop the national and provincial roads in the country's war-torn North.
The Finance and Planning Ministry said the additional financing will be used to rehabilitate 200 kilometers of 19 roads under the Northern Road Connectivity Project to improve connectivity between the Northern Province and the other provinces of the country.
The additional financing of US$ 98 million includes a loan of US$ 30 million from the Ordinary Capital Resources and a loan equivalent to US$ 68 million from the Asian Development Fund (ADF) of ADB.
The total investment cost of the project is US$ 112.8 million (approximately Rs. 14.6 billion) and the Sri Lankan government will contribute the balance US$ 14.8 million.
Secretary to the Ministry of Finance and Planning Dr. P. B. Jayasundera, and Country Director of ADB Ms. Rita O'Sullivan, on behalf of the ADB, signed the two Loan Agreements today at the Ministry of Finance & Planning.
Under the project about 80 km of national highways in the northern and north central provinces will be improved. Another 50 km and 70 km of provincial roads in northern and north central provinces respectively will be rehabilitated and selected bridges will be replaced.
The road improvement projects are to be completed by 2017.
The Road Development Authority under the supervision of the Ministry of Highways and Road Development and the Northern Provincial Council through the Northern Provincial Road Development Department under the supervision of the Ministry of Local Government and Provincial Councils will implement the project.