Feb 05, 2010 (LBO) – A water supply scheme in Galle district in Sri Lanka’s south will get an additional 2.5 million Euros of financing from Germany to complete the project after costs escalated, a senior minister said. Germany had given a 15 million Euro grant on December 07, 2009 for the second phase of the water supply scheme for areas hit by the 2004 Indian Ocean tsunami.
Germany will give an additional 1.258 million Euros as a grant and 1.966 million Euros as a loan from KfW (Kerditanstalt fur Weideraufbau) development finance agency.
An amount of 906,000 Euros will be repayable in 50 years with a grace period of 10 years and an amount of 351,000 Euros will be repayable in 40 years with a grace period of 10 years.
The credit will carry an interest rate of 0.75 percent and 0.25 percent commitment fee on the undisbursed balance.