Sri Lanka will receive a $120 million ADB loan to help expand and improve its power network to deal with rising demand and gaps in coverage. ADB’s Board approved the loan along with a technical assistance grant for the Sustainable Power Sector Support Project which will be used to build new transmission lines, strengthen distribution systems in rural areas and to electrify about 12,000 households in remote villages.
The project will target regions such as Eastern and Uva Provinces where electrification is below the national average and the power supply unreliable. It will also finance the detailed engineering design of a 30 megawatt hydro power plant.
Government of Sri Lanka will provide just over $42 million for a total project cost of about $162 million. Technical assistance will include a $1.85 million grant from the Asian Clean Energy Fund, established by the Government of Japan. The Power and Energy Ministry is the Project’s executing agency. The loan was recently signed at the Finance Ministry (ADB’s July 2011 Newsletter).
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