ADB loans US $ 150mn to CEB for clean power generation

The Asian Development Bank (CEB) has agreed to loan US$ 150 million to Ceylon Electricity Board (CEB) under a treasury guarantee for the second tranche of the of Green Power Development and Energy Efficiency Improvement Investment Programme.

The US$ 440 million programme is aimed at assisting the government’s objective of enhancing clean power generation, system efficiency and reliability.  Out of the total cost of the project, ADB is committed to provide US$ 300 million.

In 2014 November, ADB loaned US $ 150 million as the first tranche of the programme. With the US$ 150 million funding for the second tranche, ADB has completed its funding commitment for 
the project.  

However, the total investment cost of the second tranche is US$ 260 million.
The second tranche of this programme consists of three major components; 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. 
All the provinces excluding UVA Province will be directly benefitted by the implementation of transmission, distribution and demand-side management components of the above programme. 
In this connection, Finance Ministry Secretary Dr. R.H.S Samaratunga and ADB Country Director Sri Widowati, signed a guarantee agreement relevant to the above loan on December 27, at the 
Finance Ministry .