Disbursed through Denmark™s Nordea Bank, the interest free loan falls under the Danish mixed credit programme where repayments are spread over 10 years, after an initial 3-year grace period.
The project aims to increase the quantity and quality of potable water to residents in six towns, which account for about 70 percent of the population in the Nuwara Eliya district, the finance ministry said Monday.
Once completed, 18,500 new water connections will be given to people living in Hatton, Dick Oya, Maskeliya, Ginigathhena, Walapane, Rikillagaskada and Ragala towns.
The loan agreement was signed by Sri Lanka™s treasury secretary P B Jayasundara and Nordea Bank™s Vice President. Local business tycoon Harry Jayawardene, who is the Danish Consular General for Sri Lanka, was also present.