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| Sunday, 30 March 2003 |
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| News Business Features Editorial
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JBIC grants Rs. 26 billion for six projects Japan Bank for International Co-operation (JBIC) has granted a concessionary loan package of Rs. 26,070 million for six development projects. The 35th concessional loan package extended by the Government of Japan, which is repayable in 30 years includes a 10 year grace period, with a concessional interest rate of 2.2 percent per annum. Japan is the largest single contributor for towards the generation of power in Sri Lanka, with almost 22 percent of power generation being attributable through Japanese aid. The six projects to be benefited are the improvement of provincial roads, provincial irrigation systems, power sector, estate housing, community enhancement, and for the first time,the financing of rural small-scale development activities. The largest sector of the loan package goes towards the development of rural small scale activities. This includes enhancement of provincial education and training in the areas of self-employment. The upgrading of existing projects will also be financed. The present proceeds will be merged into ongoing power sector restructuring projects financed jointly by Japan and the ADB. The linking of the Kerawalapitiya combined power plant to the national grid will also be effected. This is considered as an important project to meet the increasing demand for electricity. The loan component of Rs. 4,207 million is being set aside for Community Enhancement Projects, aimed at improving regional agriculture and thereby family income in the rural sector. The area covered includes Anuradhapura, Kurunegala, Puttalam, Matale and the North East. A component of Rs. 1,285 million will be utilised for the improvement of estate housing in the Districts of Kandy, Kegalle, Nuwara Eliya, Matale and Badulla. Housing loans for the estate sector will also be made available. The maintenance and upgrading of provincial roads will benefit approximately Rs. 4000 million from the loan package. The credit agreements were negotiated between JBIC and the Ministry of Finance. |
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