Korea Eximbank provides $ 60 million EDCF loan to Sri Lanka

Chairman of the Export-Import Bank of Korea (Korea Eximbank), Kim Yong-hwan said the bank signed an Economic Development and Cooperation Fund (EDCF) loan agreement with the Ministry of Finance and Planning extending $ 60 million to develop solid waste disposal facilities and set up a Colombo Vocational Training Centre and Gampaha College of Technology.

The solid waste management project will implement an effective solid waste disposal system in selected areas in Kalutara, Galle, Anuradhapura and Kandy districts by constructing sanitary landfill facilities. The estimated cost of $ 34 million will be borne by the EDCF.

The Colombo Vocational Training Centre and Gampaha College of Technology will provide basic and advanced technical education to nurture human resources and raise job opportunities. EDCF will provide $ 26 million to construct buildings, to develop education and bring down experts for consultation.

EDCF was set up by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialisation and economic stability through the provision of long-term, low-interest credit. Korea Eximbank manages the fund as its trustee.

As at end 2012, EDCF has supported 289 projects in 50 countries with KRW 9.1 trillion.

To date, Korea Eximbank has provided Sri Lanka $ 476 million in loans on a commitment basis for 23 projects through the EDCF, starting with the Colombo-Galle Road Rehabilitation Project in 1990.

Priority areas of the Korea-Sri Lanka Partnership Strategy include roads, water treatment, education, vocational training, environment, renewable energy and good governance. The EDCF opened a resident mission in Sri Lanka in February to support the government's economic development projects.

"EDCF will support Sri Lanka's economic growth and welfare of the people while strengthening mutual cooperation between Sri Lanka and South Korea," said a Korea Eximbank official.