Finance and Mass Media Ministry Secretary Dr. R.H.S. Samaratunga and AFD Resident Mission Country Director Martin Parent exchange the signed copies of the loan agreement
French Agency for Development (AFD) has loaned 30 million euros to Sri Lanka to finance a green power development project.
This is part of a US $ 260 million project—Green Power Development and Energy Efficiency Improvement Investment Programme—for which AFD had already loaned 22 million euros to implement its first tranche.
The second tranche of the project involves transmission infrastructure enhancement, efficiency improvement of medium voltage network and demand-side management improvement for energy efficiency through development of a smart grid and metering pilot subproject.
The Asian Development Bank has already provided US $ 150 million for the project. The balance amount will be borne by the Ceylon Electricity Board (CEB).
The CEB has an ambitious capital investment plan for the next 10 years to maintain 100 percent electrification while improving the supply quality and reliability.
While ensuring a continuous supply of electricity, managing a strategic balance between indigenous energy resources and imported fossil fuels and coal remains a major challenge faced by Sri Lanka’s power sector.