Dec 19, Colombo: The Asian Development Bank (ADB) has granted Sri Lanka USD 115 million of financial assistance for the implementation of Supporting Electricity Supply Reliability Improvement Project to fully electrify the island including its small isolated islands.
Country Director of the ADB's Sri Lanka Resident Mission Sri Widowati Monday signed the grant agreement on behalf of ADB while Dr. R.H.S. Samaratunga, Secretary to the Treasury, Ministry of Finance, signed for the Government of Sri Lanka.
The Supporting Electricity Supply Reliability Improvement Project will support the government aim to achieve 100 percent electrification by providing electricity access to population living in under-developed areas and small isolated islands in the Northern Province.
The project covering 106 rural electrification schemes will directly benefit the development of lagging areas. It is expected to provide electricity to about 35,710 rural households, including the former conflict-affected Northern and Eastern provinces as well as Uva and North Central provinces where the current electrification level is lower than in other parts of the country.
Innovative hybrid mini grids, consisting of wind solar and efficient diesel generation systems coupled with energy storage (lithium-ion batteries), will be implemented in the small isolated islands. As a result, the project will help to ensure inclusiveness and access to electricity by all the population. Improvement of the medium voltage network will enhance the quality and reliability of electricity supply to more than 493,000 consumers.
The total investment cost of this project is USD 164 million. Out of the total, USD 115 million will be obtained from ADB by Ceylon Electricity Board as a loan, while USD 45.2 million will be provided as domestic funds, according to the Finance Ministry. In addition, a grant of USD 1.8 million will be provided by Clean Energy Fund (CEF) and a grant of USD 2 million will be provided by Japan Fund for Poverty Reduction (JFPR). The borrower of the loan is the CEB under a treasury guarantee.