Govt. to borrow $200 mln from ADB for food security project

The Government is planning to borrow US$ 200 million from the Asian Development Bank (ADB) to finance the implementation of Food Security and Livelihood Recovery Emergency Assistance Project which is expected to ensure access to food and protect livelihoods of the poor and vulnerable, especially women and children.

The loan of $ 200 million will be provided from ADB’s Ordinary Capital Resources. In addition, the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) will provide a grant of $3 million through ADB to finance the project activities

The total project cost is estimated as $203.36 million, out of which USD 0.36 million has been agreed to be borne by the Government.

The project will also upgrade information technology systems and digital tools for the Samurdhi programme and agriculture and agrarian development to enhance cash grant beneficiary selection, verification, monitoring, and communication, and improve financial, advisory, and other services for low-income families and farmers. The project is scheduled to be completed by 29th February, 2024.

The relevant Loan Agreement for the Food Security and Livelihood Recovery Emergency Assistance Project, amounting to $200 million and the Grant Agreement amounting to $ 3 million were signed by K M Mahinda Siriwardana, Secretary, Ministry of Finance, Economic Stabilization and National Policies and Chen Chen, Country Director, ADB Resident Mission. (BS)