Press briefing of Cabinet Decision taken on 2011-07-27

Financial Assistance from the Asian Development Bank (ADB) for the implementation of Pura Neguma - Local Government Enhancement Project

- on a proposal made by H.E. the President, loan negotiations are to be held with the Asian Development Bank on the 03rd and 04th August 2011 to obtain financial assistance in a sum of US $59 million (approximately Rs.6.5 billion) to improve the Local Government Infrastructure and Service Delivery through implementation of the Pura Neguma - Local Government Enhancement Project. The total investment for the project is US $68.77 million, which includes a loan of US $59 million from the Asian Development Fund and Government contribution of US $9.77 million. The project will provide capital grants to selected Local Authorities for eligible sub-projects such as, water supply and sanitation, drainage, solid waste management, roads and bridges, improvement of maternity and healthcare centres, public markets etc. Cabinet approval was granted to enter into a loan agreement with the Asian Development Bank for a loan of US $59 million for the above project.