ADB Provides $ 800 Million Loan For 'Maga Neguma' Project

The Asian Development Bank (ADB) has agreed to provide their loan assistance of USD 800 million for the "Maga Neguma" Integrated Road Investment Program of the Sri Lankan government. This will cover 6 provinces in Sri Lanka, Southern Province, Sabaragamuwa Province, Central Province, North Central Province, North Western Province and Kalutara District of Western Province. The Government’s investment to implement this program in the above provinces is USD 106 million.

The overall program will design, improve and maintain about 3,106 km of rural access roads, including provincial and local authority roads and about 260 km of national roads. The rural access roads will be improved to all weather standards, and be maintained for three years under the program. Selected national road corridors will be improved and maintained for seven years, while short isolated sections will be maintained for three years after improvement. In addition, the program will improve the capacity of the road development agencies, including Ministry of Highways Ports and Shipping, Road Development Authority (RDA), provincial road agencies and local authorities on road asset management, project management, and contract administration.

Arrangements have been made to mobilize the loan facility (USD 800 million) from ADB in 6 tranches and will be expected to disburse the first tranche in an amount of USD 100 million with the USD 18 million of Government’s investment. The first tranche will finance the first slice of the project in Southern Province in order to improve and maintain 560 km of rural access roads and 130km of national roads, build capacity of implementing agencies in Southern Province and prepare projects for subsequent tranches.

The Ministry of Highways, Ports and Shipping will be the Executing Agency for the Project, and the implementing agency will be the Road Development Authority. The Ministry of Highways, Ports and Shipping will be responsible for program-specific monitoring and reporting. The overall project is scheduled to be completed by 30th March 2024.

In this connection, Dr. P B Jayasundera, Secretary to the Ministry of Finance and Planning on behalf of the Government of Sri Lanka and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the two Loan Agreements to obtain USD 100 million on 5th November 2014 at the Ministry of Finance and Planning.

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