US $259.8 million assistance from the Government of China to finance road projects

(December 09, Colombo, Sri Lanka Guardian) A Credit facility of US $259.78 million will be provided by China through the Export Import Bank of China to finance 85% of the total cost of the following road projects.

Rehabilitation and improvement of 67 km of Navatkuli- Karaitivu Mannar (A032) road

Rehabilitation and improvement of 113 km. of Puttalam- Maarichchi kade-Mannar (B 379, B 403) road.

Southern Transport Development Project - 15 km. of highway section from Pinnaduwa to Kodagoda (Package 1).

Southern Transport Development Project - 15 km. of highway section from Kodagoda to Godagama and

balance work in Galle Port Access Road (Package 2).

Total cost of the projects will be US $305.63 million. The balance 15% will be provide by the Government of Sri Lanka

In addition, a project to improve a total length of 1,174 km of roadways throughout the country will be undertaken also with Chinese financial assistance

The Cabinet has decided to obtain a loan facility of USD 500 million from China Development Bank Co-operation to finance improvement and rehabilitation of priority roads.

A sum of USD 158.2 will be provided in 2010 and the balance in 2011 to finance these road projects.