|Colombo: Sri Lanka and the Asian Development Bank (ADB) have signed a $160 million loan agreement for the development of the country’s power sector.|
The loan includes $135 million from ADB's Ordinary Capital Resources (OCR) and a further $25 million from its concessional Asian Development Fund (ADF) for the Clean Energy and Access Improvement Project in Sri Lanka.
The funds will be used to support energy efficiency improvements, developing use of renewable energy, increase connections and services to rural households including poor households in conflict-affected areas in the north and east of Sri Lanka.
The loans cover 85% of the project cost of $188.2 million. The demand-side management initiative will also receive $2.2 million grant from ADB’s Climate Change Fund.
ADB will also provide Technical Assistance grants to support project implementation and to strengthen capacity of the Public Utilities Commission of Sri Lanka (PUCSL).
The Ministry of Power and Energy will be the executing agency for the project which is due for completion in May 2013. The implementing agencies will be Ceylon Electricity Board (CEB) and the Lanka Electricity Company (LECO).