SL secures US $ 270mn ADB loan for roads, water supply

• Integrated Road Investment Programme implemented in six Provinces
• About 3108 km of rural access roads to be improved
• Safe drinking water to entire population by 2020
• Govt’s contribution to total programme is US$ 106 mn

Sri Lankan government has entered into three loan agreements worth of US $ 270 million with the Asian Development Bank (ADB) for the implementation of two projects— Integrated Road Investment Programme and Jaffna Kilinochchi Water Supply Project. 

A loan of US $ 150 million was obtained for the investments required for the fourth tranche of the Integrated Road Investment Programme and two loans worth of US $ 120 million were obtained as additional financing for the investment required for the ongoing Jaffna Kilinochchi Water Supply Project. 

The Integrated Road Investment Programme is being implemented in six Provinces; i.e. Southern, Central, Sabaragamuwa, North Western, North Central Provinces and Kalutara district in Western Province under the financial assistance of ADB since 2014 with the aim of building up better connectivity between rural communities and socio economic centers.  About 3108 km of rural access roads and about 248 km of national roads will be improved and maintained under this programme. In addition, the programme is focused on enhancing the capacity of road agencies on road asset management, project management and contract administration. The total investment cost of the overall programme is US$ 906 million of which US$ 800 million will be provided by ADB under Multi-tranche Financing Facility (MFF) through six tranches. 

The government’s contribution for the total programme is US$ 106 million. The government has already obtained loan assistance of US$ 407 million from ADB under the 1st, 2nd and 3rd tranches.

The total investment cost of the proposed tranche 4 is US$ 168 million. The Government will contribute US$ 18 million and the balance US$ 150 million will be obtained from ADB.

Meanwhile, safe drinking water is an essential prerequisite for better health and socio economic development in a country.

The focus of the government to provide safe drinking water to the entire population of the country by 2020 of which 60 percent would be pipe borne water. 
Accordingly, the overall impact of the Jaffna Killinochchi Water Supply Project is to improve health and human development in urban areas of Jaffna Peninsula. 
Improvement of headwork at the Iranamadu water tank, implement of water supply infrastructure and services in the Jaffna Peninsula and strengthening of water resources management system are the main components of this project. Additional financing of the Jaffna-Kilinochchi Water Supply Project will support restructuring of the current project by financing the cost overrun under the current project and supporting the additional activities of the desalination plant and related works under the component of improvement of water supply infrastructure and services in the Jaffna Peninsula and additional activates of the water resource management system component.

The total investment cost of the Jaffna-Killinochchi Water Supply Project - Additional Financing will be US$ 153 million. The government will contribute US$ 33 million and the balance portion of US$ 120 million will be provided in two loans by ADB.