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Korean concessional loan of USD 14Mn to support garbage collecting in local authorities

Jul 02, 2018 (LBO) - The Government of Republic of Korea has agreed to provide two concessional loans for US 14 million dollars  (Approximately Rs.2,240 million) to supply of 190 nos. of garbage collecting compactors to Local Authorities of Sri Lanka. This initiative is in line with the Government’s target of strengthening local authorities with necessary equipment and technology to introduce modern solid waste management practices. Increasing volume of Solid waste generated in the urban and sub urban areas has become a nation -wide problem and the rapid growth of population in urban areas, recent changes of consumption pattern and growing  industrial and economic activities have  directly associated with this chronic problem of the country. Due to the present inadequate capacity for the collection and transportation of solid waste and outdated technology are being used for handling solid waste by local authorities, various health and other hazardous situation occurred in urban areas. Currently, most of the garbage are being transported by open trailers attached to the tractors.
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As a prerequisite to promote sustainable solid waste management system, the capacity of waste collection and transportation of Local Authorities need to be improved. In this context the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank (Exim Bank) of Korea has agreed to provide two loans in Korean won not exceeding the equivalent of US 14,000,000 dollars to supply 190 nos of garbage collecting compactors to improve the garbage collecting capacity of 84 local authorities in Sri Lanka. The interest rate per annum will be 0 percent with a repayment period of 30 years including a grace period of 10 years.
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