Funds galore for development projects

LOANS: The Government has entered into over USD 700 million worth loan and grant agreements during the last four months for various development projects in the country.

Secretary to the Ministry of Finance and Planning Dr P.B. Jayasundera said the Government has already executed USD 719 million worth of loan and grant agreements up to now.

Under these loans and grant agreements Japan has committed to provide USD 347 million while Spain and Germany will provide USD 17 million each for development projects in the country.

Austria is to provide USD 13 million and Netherlands and UN agencies will provide USD 12 million each to the country. These funds will be utilised on implementation of pro-poor rural development project, Greater Colombo Transport Development Project and the Water Sector Development Project.

Government also entered into USD 300 million loan agreement with Asian Development Bank (ADB) for a port expansion project. However the Government expects a USD 515 million commitment from ADB this year.

Jayasundera said that ADB has funded many infrastructure development projects including the Southern Highway project in Sri Lanka.

Last year ADB conducted a monitoring programme to expedite and proper utilisation of funds on various development projects. This year too the Government expects to work on proper utilisation of these funds and accelerate the development projects in the country, he said.

(AS)