JBIC SIGNS ODA LOAN TO SRI LANKA --To Finance Road Construction and Water Supply--
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today with the Government of Sri Lanka, two ODA Loans totaling 23,921 million yen with Sri Lanka to finance its Southern Highway Construction Project to be executed by the Road Development Authority and the Greater Kandy Water Supply Project to be carried by the National Water Supply and Drainage Board. This brings JBIC's cumulative ODA loan commitments to the country to 85, totaling 515,204 million yen.
2. Of the two loans, the one for the Southern Highway Construction Project will finance civil works, procurement of materials and equipment and consulting services for the construction of a 128-kilometer highway as a bypass for National Road A2 that stretches from Colombo to Marata. The loan for the Greater Kandy Water Supply Project will provide funds for the construction of intake, diversion, water purification, pumping, draining and chlorine treatment facilities, as well as procurement of equipment for maintenance and consulting services.
3. Southern Sri Lanka where the Southern Highway Construction Project is being undertaken is the least developed region of the country. The primary reason is its poor transportation infrastructure including roads, and the region's development needs to be addressed. Therefore, this project aims to construct a 128-kilometer highway exclusively for automobile traffic, as a bypass for National Road A2. By improving the flow of motor vehicle traffic, the project will relieve traffic congestion in the Colombo area and improve transportation between this area and the southern region. This will contribute to the region's economic development.
4. In the Greater Kandy area, a recent sharp increase in population has created a situation where water supply is falling behind demand. Expanding the water supply capacity is an urgent need to ensure better living conditions and improve public health. Therefore, the Greater Kandy Water Supply Project aims to increase the water supply facilities in the northern part of the Greater Kandy area and achieve a stable supply of water by increasing hours during which the water is supplied. This will improve public health and living conditions.