Sri Lanka gets US$85mn from ADB for water supply

March 19, 2009 (LBO) – Sri Lanka will get 85 million US dollars in loans and grants from the Asian Development Bank for water supply and sanitation in four regional urban areas, a government minister said. The National Water Supply and Drainage Board will use the funds to rehabilitate and develop water and sanitation infrastructure in Vavuniya, Mannar, Puttalam and Chilaw towns.

The ADB will give a 59.78 million loan with a 32-year payback and an eight year grace period from its Asian Development Fund (ADF). An interest rate of 1.0 percent would be charged during the grace period and 1.5 percent thereafter.

It will be supplemented by a 23.3 million US dollar grant and another 2.0 million US dollars from the Netherlands Trust Fund for Water Financing Partnership Facility, information minister Anura Yapa said.

The cabinet of ministers had given the nod to sign the loan agreement, he said.

The Sri Lanka government will contribute 28.3 million US dollars for the project valued at 113.33 million US dollars.