ADB lends US $ 120 m
To improve power network:
Sri Lanka will receive a $ 120 million Asian Development Bank (ADB)
loan to help expand and improve its power network to deal with rising
customer demand and gaps in coverage which are hindering growth. ADB’s
Director Board has approved the loan, along with a technical assistance
grant for the Sustainable Power Sector Support Project which will be
used to build hundreds of kilometres of new transmission lines, to
strengthen distribution systems in rural areas, and to electrify about
12,000 households in remote villages.
Rural electrification to get boost
The project will target regions such as Eastern and Uva Provinces
where electrification is below the national average and the power supply
“This project will help expand coverage and improve the efficiency
and reliability of electricity supplies in areas that require them most
urgently, thus supporting the Government’s goal of providing nearly 100
percent of households in the country with electricity by 2016,” ADB
Senior Energy Specialist Mukhtor Khamudkhanov said.
The project will also help the Government reduce imports of
expensive, polluting fossil fuels by providing a credit line of nearly $
1.3 million to private developers for about 19 targeted small hydropower
facilities and by financing the detailed engineering design of a 30
megawatt hydropower plant.
The technical assistance will help create a national energy
efficiency strategy and implement urgent energy efficiency policy
The loan funds will include a 25-year $ 110 million loan from
ordinary capital resources and a 32-year $ 10 million equivalent loan
from ADB’s confessional Asian Development Fund.
The Sri Lankan Government will provide just over $ 42 million, for a
total project cost of about $ 162 million.
The technical assistance will include a $ 1.85 million grant from the
Asian Clean Energy Fund, established by the Japanese Government, under
the Clean Energy Financing Partnership Facility administered by ADB, and
nearly $ 400,000 from the Sri Lankan Government.
The Power and Energy Ministry is the executing agency for the project
which will run for three years with an expected completion date of April
ADB, based in Manila, is dedicated to reducing poverty in Asia and
the Pacific through inclusive economic growth, environmentally
sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members - 48 from the region.