AFD to finance projects

by Surekha GALAGODA

AFD (Agence Francaise de Development) the French Development Agency is willing to finance new projects in Sri Lanka, said Regional Director AFD, Yves Boudot. It is presently considering co-financing along with the Asian Development Bank, the Jaffna and Kilinochchi Water Supply and Sanitation Project.

He said that under normal circumstances AFD does not finance road projects instead are involved in the sectors of Health and Education. After the tsunami, AFD financed the Trincomalee Integrated Infrastructure Project (TIIP) on the request of the Sri Lankan government.

In the Eastern Province, AFD has provided a soft loan of 79 million Euros to Sri Lanka for the Trincomalee Integrated Infrastructure Project. The main component of this project, roads reconstruction in Trincomalee and Batticaloa district, will be completed next year and will represent a great improvement for the population of this area. AFD hopes to contribute to the development of this area affected by conflict and natural catastrophes.

Boudot said that the main component of the TIIP aims to reconstruct roads damaged by the Tsunami. The reconstruction of the A15 road (98km from Thirukkodiyamadu to Trincomalee) the B10 road (41km between Allai and Kantale) and the C- Class Coastal road (11.9km from Mawadichenai to Ganesapuram) is currently under process.

The project also includes the construction of five new bridges on the A15 road: Kayankerni Bridge, Verugal Bridge, Ralkuli Bridge, Gangei Bridge and Upparu Bridge. Once completed, those bridges will allow crossing rivers in a few minutes where ferries or long detours used to takes hours.

This road project will cost approximately Rs. 11,498 million: AFD is funding 58.16 million Euros (the equivalent of Rs. 8,898 million) through a soft loan and the Sri Lankan Government will finance the balance.

In the framework of the same project, AFD also funds three other components which contribute to improve drinking water supply and electricity distribution in the Trincomalee district and its surroundings and also contribute to uplift the living conditions of the population through infrastructure such as schools, libraries and medical centres.

AFD is the central agency for French bilateral aid and cooperation, working for more than 60 years in more than 60 countries among which nine are in Asia. AFD fights poverty and supports economic growth on behalf of the French government through soft loans granted to governments or public utilities.

Through its subsidiary, PROPARCO, AFD also supports the development of the private sector.