Financial Assistance: SL to receive $ 30 m from IDA World Bank

The Government of Sri Lanka has arranged to enter into a loan agreement of $ 30 million from the International Development Association (IDA) of the World Bank Group to finance the implementation of the Secure, Affordable, and Sustainable Energy for Sri Lanka Project. 

The financing agreement for this operation was signed on 3 December by Treasury Secretary Dr. Harshana Suriyapperuma and World Bank Group Division Director for Maldives, Nepal, and Sri Lanka David Sislen, on behalf of the Government of Sri Lanka and the IDA, respectively.

The grid capacity have been hindered the utilisation renewable energy presenting significant technical challenges, therefore, the proposed project has been formulated to enhance the infrastructure facilities to facilitate the grid integration of renewably energy in alignment with the Government’s power sector policy, aimed at generating 70 percent of the country’s electricity from renewable sources by 2030.

This investment will be further complemented by the proposed payment guarantee facility by the World Bank group to scale up the private sector investment for renewable energy transformation through a number of lending instruments by the World Bank Group. Therefore, the Secure, Affordable, and Sustainable Energy for Sri Lanka Project will advance key objectives such as scaling up renewable energy adoption, strengthening grid infrastructure to ensure secure and affordable power supply, mobilising private sector participation, and enhancing institutional capacity to sustain long-term sector reforms.

The total project cost is $ 60 million, out of which $ 30 million will be provided by the World Bank as the first phase of the project and the remaining $ 30 million is expected to be obtained from the World Bank as the second phase. It is expected to lend the loan facility to Ceylon Electricity Board.

The project will be implemented by the Ceylon Electricity Board, in coordination with relevant agencies such as the Ministry of Energy.

Source: The morning