Road Finance

Nov 19, 2012 (LBO) – Sri Lanka has got a loan of 98 million US dollars from the Asian Development Bank for a 112.9 million US dollar (14.6 billion rupees) program to rebuild 200 kilometres of roads in former war zones in the north of the island. The additional financing for the Northern Road Connectivity Project will be used to rebuild 19 roads and bridges in the northern and north central provinces, a statement by Sri Lanka’s finance ministry said.

The ADB is loaning 20 million US dollars from is ordinary capital resources window and 68 million US dollars from the Asian Development Fund. ADF loans are typically cheaper.

Sri Lanka’s government would put in 14.8 billion US dollars.

The loan agreement was signed by Sri Lanka’s finance ministry secretary P B Jayasundera, and ADB country director Rita O’Sullivan.

The project is expected to be completed by December 2017.