Godman
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Sri Lanka : Sri Lanka signs loan agreements with Saudi Fund to rehabilitate highway and procure medical equipment
Oct 30, Colombo: The Government of Sri Lanka has signed two new loan agreements with Saudi Fund for Development (SFD) Friday to obtain financing for two major projects.
The SFD will partly finance the rehabilitation of A 5 Road corridor from Badulla to Chenkaladi and provide funding to procure medical equipment for the ongoing Epilepsy Hospital Project, the Finance Ministry said.
Both Loan Agreements have been inked today in Colombo by Secretary to the Treasury and Secretary to the Ministry of Finance Dr. R.H.S. Samaratunga, and Vice Chairman and Managing Director of SFD Youssef AL-Bassam.
The A5 is one of the major highways linking parts of the Central Province to Eastern Province geopolitical zones of the country which carries the bulk of the traffic between Batticaloa and Peradeniya via Badulla.
Improvements to A5 road corridor from Badulla to Chenkaladi would enhance access to markets and social infrastructure such as schools and hospitals and integrate isolated segments of the rural population into the overall economy. The reduction in the travel time due to the reduction of traffic congestion, reduction in vehicle operation costs would ultimately reduce the travel cost benefiting both passengers and industries.
The project, at a total estimated cost of USD 140 million, is jointly financed by SFD and OPEC Fund for International Development (OFID).
Under today�s Financing Agreement, SFD will provide USD 60 million for the project.
A Financing Agreement with the OFID has been signed on 26th June 2015 to obtain another USD 60 million and Government of Sri Lanka would provide the balance financing for the A5 project.
With the signing of Financing Agreement today with SFD, OFID loan becomes active and the project work could be commenced, the Ministry said.
The funds for Epilepsy Hospital comes as an additional financing of USD 12 million for procurement of equipment for the ongoing Epilepsy Hospital Project where SFD has provided USD 20 million to construct fully equipped state of the art hospital for epilepsy patients.
The ten-storied hospital building consists of an operation theater, Intensive care unit (ICU), High Dependency Unit (HDU), 242-bed male & female wards, an auditorium for capacity building for island wide medical staff.
The additional financing is mainly to procure all necessary equipment including device ray CT, Magnetic Resonance Imaging (MRI) machine, physical therapy devices, Medical furniture, etc.
Both loans are at an interest rate of 2 percent per year, payable in 20 years with a 5-year grace period.
Oct 30, Colombo: The Government of Sri Lanka has signed two new loan agreements with Saudi Fund for Development (SFD) Friday to obtain financing for two major projects.
The SFD will partly finance the rehabilitation of A 5 Road corridor from Badulla to Chenkaladi and provide funding to procure medical equipment for the ongoing Epilepsy Hospital Project, the Finance Ministry said.
Both Loan Agreements have been inked today in Colombo by Secretary to the Treasury and Secretary to the Ministry of Finance Dr. R.H.S. Samaratunga, and Vice Chairman and Managing Director of SFD Youssef AL-Bassam.
Improvements to A5 road corridor from Badulla to Chenkaladi would enhance access to markets and social infrastructure such as schools and hospitals and integrate isolated segments of the rural population into the overall economy. The reduction in the travel time due to the reduction of traffic congestion, reduction in vehicle operation costs would ultimately reduce the travel cost benefiting both passengers and industries.
The project, at a total estimated cost of USD 140 million, is jointly financed by SFD and OPEC Fund for International Development (OFID).
Under today�s Financing Agreement, SFD will provide USD 60 million for the project.
A Financing Agreement with the OFID has been signed on 26th June 2015 to obtain another USD 60 million and Government of Sri Lanka would provide the balance financing for the A5 project.
With the signing of Financing Agreement today with SFD, OFID loan becomes active and the project work could be commenced, the Ministry said.
The funds for Epilepsy Hospital comes as an additional financing of USD 12 million for procurement of equipment for the ongoing Epilepsy Hospital Project where SFD has provided USD 20 million to construct fully equipped state of the art hospital for epilepsy patients.
The ten-storied hospital building consists of an operation theater, Intensive care unit (ICU), High Dependency Unit (HDU), 242-bed male & female wards, an auditorium for capacity building for island wide medical staff.
The additional financing is mainly to procure all necessary equipment including device ray CT, Magnetic Resonance Imaging (MRI) machine, physical therapy devices, Medical furniture, etc.
Both loans are at an interest rate of 2 percent per year, payable in 20 years with a 5-year grace period.
