France to provide loan for Trinco roads

Colombo: An Agreement to provide an additional concessionary loan for 15 million Euros by the Government of France was signed recently.

The facility, which will be used for the reconstruction of 135 km of highways, 5 bridges and a causeway follows a concessionary loan of 64 million Euros (Rs.10.7 billion) granted by the Government of France in December 2005 for the rehabilitation of infrastructure facilities affected by Tsunami in the Trincomalee District.

Of this amount 40.3 million Euros was allocated for the reconstruction of highways and bridges while 10.3 million Euros was utilized for the improvement of the water supply in the district, 11.3 million Euros was used for community development activities and 2.1 million Euros for the augmentation of the district’s power supply.

As the funds allocated for the reconstruction of highways and bridges was insufficient, the French Government agreed to provide an additional 15 million Euros. The construction and rehabilitation of highways and bridges is expected to commence in the next month while the power supply and community development activities have already commenced and are being implemented under the Trincomalee Integrated Infrastructure Project.

In addition to this, the Government of France has also provided 10 million Euros for the Greater Trincomalee Water Supply Project bringing the total funds provided by the French Government to 89 million Euros (Rs.15 billion) for the rehabilitation activities of the Trincomalee District.

The Loan Agreement was signed at the Ministry of Finance and Planning. The Secretary to the Ministry of Finance and Planning Dr. PB. Jayasundera signed the Agreement on behalf of the Government of Sri Lanka while Mr. Jean Bernard Maucor, Resident Representative of the French Development Agency in Sri Lanka signed on behalf of the French Development Agency.

The Ambassador for France in Sri Lanka H.E Michel Lummaux was also present at this occasion.