EIB to provide Eur. 50 Mn loan to GoSL

Published : 9:36 am  January 24, 2017 | No comments so far |  | 


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By Lahiru Pothmulla   
The European Investment Bank (EIB) yesterday said it will provide EUR 50 million to support the improvement and expansion of sewage networks across the Sri LankaBUP(EH)CITY-DM-4n capital, Colombo.   

The new loan will help the Colombo Municipal Council achieve its goal of providing full sanitation coverage to benefit people living and working in the greater Colombo area.   

The new EIB loan is European Investment Bank’s first ever support for water investment in Sri Lanka and the first loan for public sector investment agreed with the new post civil-war government.   

“New support from the European Investment Bank will help unlock essential new investment to improve sanitation in Colombo. I look forward to strengthening cooperation between the EIB and Sri Lanka in the years to come,” Finance Minister Ravi Karunanayake said following his meeting in Brussels with senior European Investment Bank officials responsible for lending in South Asia.   

“Increased access to sanitation to be achieved by this project will improve the lives of thousands of people living in Colombo and contribute to achievement of sustainable development goals in Sri Lanka. The European Investment Bank is pleased to be working closely with partners in Sri Lanka to ensure an environmentally sustainable future for the country’s capital and is grateful for the excellent cooperation with the Asian Development Bank in our first joint support in the country,” said Andrew McDowell, European Investment Bank Vice President. 

The existing water supply and sewage network in Colombo was built a hundred years ago and is not adequate for the city’s needs. Once complete, the upgraded water network will enable a clean water supply 24 hours a day and seven days a week, compared to the currently heavily restricted service.   

The new water investment programme will include provision of a new sewage network in the currently unserved areas of Kirulapone. Under the initiative, a new wastewater treatment facility will also be built to reduce pollution at the Wellawatte sea outfall.   

“It is encouraging to see others joining in this effort to improve Colombo city dwellers’ quality of life, for CMC water investment programme which will cater to the increasing demand in the city for improved water and wastewater services,” said Sri Widowati, Country Director, Sri Lanka Resident Mission, Asian Development Bank.   

 The new European Investment Bank loan to the Government of Sri Lanka will be used to finance investment works being undertaken by the Colombo Municipal Council. The Asian Development Bank (ADB) will also support the water investment project and this new initiative marks the first time that the European Investment Bank has financed a project alongside another International Financial Institution in Sri Lanka.