Jan 29, 2011 (LBO) – Sri Lanka’s power utility will get a 120 million US dollars loan from the Asian Development Bank to expand its distribution network to rural areas which are not served by the grid, the lender has said. The government will put in 42 million US dollars for the project which will build new transmission lines to electrify 12,000 households in remote villages in Sri Lanka’s Uva and Eastern provinces.
The project will expand coverage and improve the reliability of supply and help the government’s aim of providing power to nearly 100 percent of houses by 2016, ADB energy specialist Mukhtor Khamudkhanov said a in a statement
About 110 million US dollars will come in the form of a 25-year loan from ADB’s ‘ordinary capital resources’ window and 10 million dollars from a 32-year more concessional ‘Asian Development Fund’ money.
The project will also have a 1.3 million dollar credit line for 19 private hydro power plants and the engineering designs for a 30 MegaWatt hydro plant. Japan will give a 1.85 million grant from the Asian Clean Energy Fund and 400,000 US dollars from the government of Sri Lanka.