Govt. to construct steel flyovers with euro credit line

Three steel flyovers will be constructed in Rajagiriya, Polgahawela and Ganemulla with a 53 million euro credit line from Spain, Cabinet Spokesman Rajitha Senevirathne yesterday said.

The flyovers are to be constructed to ease the traffic congestion in the Colombo city and the suburbs.
The flyover in Rajagiriya junction will be a four-lane one while the other two in Polgahawela and Ganemulla over the railway crossings will have two lanes each.
The credit from government of Spain which is 37.59 million euros is expected to cover 70 percent of the project. The loan will be given at 0.15 percent interest rate per year and will have a 40-year payback period.
The balance 30 percent will be drawn from by BBVA Bank of Spain at an interest rate of 1.95 percent. The loan will have a 3-year grace period and will have to be settled in 10 years. The proposal made by in the regard by Prime Minister Ranil Wickramasinghe in the capacity of Policy Planning and Economic Affairs Minister to enter into the agreements with the government of Spain and BBVA Bank was approved by the Cabinet of ministers.