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USD 150 million ADB loan for Green Power Development and Energy Efficiency Improvement

December, 28, 2016

ADB Provides loan assistance of USD 150 million for the implementation of Green Power Development and Energy Efficiency Improvement Investment Program – Tranche 2

The implementation of Green Power Development and Energy Efficiency Improvement Investment Program will support the Government’s objective of enhancing clean power generation, system efficiency and reliability.

The total investment cost of this program is USD 440 million of which USD 300 million will be provided by ADB under Multi - tranche Financing Facility (MFF). This program consists of two tranches. Accordingly, the Government of Sri Lanka signed two loan agreements worth of USD 150 million with ADB on 20th November 2014 to finance the first tranche of the programme.

The total investment cost of the tranche 2 is USD 260 million and ADB will provide USD 150 loan directly to Ceylon Electricity Board (CEB) under a treasury guarantee.

Tranche 2 of this programme consists of the following three major components; (i) Transmission infrastructure enhancement; (ii) Efficiency improvement of medium-voltage network and (iii) demand-side management improvement for energy efficiency through development of a smart grid and metering pilot subproject. All the Provinces excluding UVA Province will be directly benefitted with the implementation of Transmission, Distribution and Demand side Management components of the above programme.

In this connection, Dr. R H S Samaratunga, Secretary of the Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed a Guarantee Agreement relevant to the above loan on 27th December 2016 at the Ministry of Finance. Further, the Ceylon Electricity Board entered into two Loan Agreements with ADB to obtain USD 150 million to finance the tranche 2 of the above program.