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Press Releases

NR/2005-18
June 9, 2005

Overseas Economic Cooperation Operation

JBIC Signs ODA Loan Agreements with Sri Lanka:
Supporting Reconstruction from Devastation of Civil Conflict and Tsunami

  • 1. Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed today ODA loan agreements totaling 11.284 billion yen with the Government of the Democratic Socialist Republic of Sri Lanka to finance the Vavuniya-Kilinochchi Transmission Line Project and the Sri Lanka Tsunami Affected Area Recovery and Takeoff (STAART) Project.
  • 2. These loans are provided to support reconstruction in northern Sri Lanka, a region ravaged by civil war, and urgent rehabilitation and reconstruction of the areas affected by the tsunami that broke out in the Indian Ocean in December 2004.
  • 3. The following is a brief summary of the newly signed ODA loans.

    (1) Support for reconstruction efforts in the civil war-ravaged northern region
    Since an indefinite ceasefire agreement in February 2002 between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam (LTTE), brought the 20-year civil conflict to an end, reconstruction and development efforts have been underway.
    To support peace building efforts, JBIC provided ODA loans last December for three projects, including the Small-scale Infrastructure Rehabilitation and Upgrading Project (II). An ODA loan for the Vavuniya-Kilinochchi Transmission Line Project is a follow-up to these loans and will support reconstruction of the transmission lines and a substation in the civil war-ravaged northern region.

    (2) Support for rehabilitation/reconstruction of the tsunami-affected areas
    The tsunami that followed a major earthquake off the coast of Sumatra in December 2004 caused extensive damage in Sri Lanka and claimed a toll of more than 30,000 lives. In January this year, JBIC, the World Bank and the Asian Development Bank conducted a joint damage and needs assessment to gauge the extent of damage and the needs for disaster recovery assistance.
    The Sri Lanka Tsunami Affected Area Recovery and Takeoff (STAART) Project will support rehabilitation/reconstruction of economic infrastructure, including roads, water and power supply, and provide financial assistance to the private sector, including the fisheries and tourism industries.
  • 4. Project names, loan amounts and conditions of the newly signed loans are shown below.
    Project NameAmount
    (Mil. Yen)
    Interest Rate
    (% per annum)
    Repayment Period/
    Grace Period(Years)
    Procurement
    Vavuniya-
    Kilinochchi
    Transmission Line
    Project
    1,2780.75*40/10*General Untied
    Sri Lanka Tsunami
    Affected Area
    Recovery and
    Takeoff (STAART)
    Project
    10,0060.75**40/10**General Untied
    Total11,284   

    * Preferential terms (support for peace building efforts)
    ** Preferential terms (support for peace building efforts and SMEs)

    (Click here for details of the Projects.)

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