French Agency for Development (AFD) provides Euro 30 million for electricity improvement projects

The French Agency for Development (AFD) came forward to provide Euro 30 million for the Implementation of Green Power Development and Energy Efficiency Improvement Investment Program – Tranche 2, a statement from Department of External Resources said.  

It is expected to implement the tranche 2 of the Green Power Development and Energy Efficiency Improvement Investment Program which will include three major components; i.e. (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. AFD has already provided financing of Euro 22 million for the implementation of Tranche 1 of the Programme.

Total cost of this project is estimated at US$ 260 million. Asian Development Bank has already provided USD 150 million loan to finance a part of the project. French Agency for Development (AFD) will provide Euro 30 million loan to finance a part of the total project cost and the balance will be borne by the Ceylon Electricity Board.

Dr. R H S Samaratunga, Secretary of the Ministry of Finance and Mass Media on behalf of the Government of Sri Lanka and Mr Martin Parent, Country Director of AFD Sri Lanka Resident Mission on behalf of AFD, signed a Credit Facility Agreement relevant to the above loan yesterday at the Ministry of Finance and Mass Media.