Govt. to ink MoU with ADB for USD 192 mn worth railway development projects

The government will sign an agreement with the Asian Development Bank (ADB) tomorrow (Aug 20) for a USD 192 million worth two-pronged railway development project, Transport Minister Arjuna Ranatunga said today.

The agreement will be signed at the Ministry of Finance.

Last week, the ADB announced that it had approved a loan of USD 160 million for the project. The remaining USD 32 million will be provided by the government.

Addressing a press briefing, Transport Minister Ranatunga explained that two projects namely the Colombo Suburban Railway Project (CSRP) and the Railway Efficiency Improvement Project (REIP) would take place during the next five years.

The CSRP project would see the electrification of railway lines while the REIP project would be centred on improving railway facilities.

Rail tracks from Colombo – Rambukkana (85 km), Kalutara – Colombo along the coastal rail track (55 km), Ragama – Negombo along the Puttalam rail track (25 km) would be electrified under this project.

In addition, the Colombo – Avissawella rail track spanning 60 kilometers would also be upgraded under four phases to run on electricity, with bids to be called for the first two stages this year.

The REIP project would revolve around the introduction of new ticketing systems, construction of a new railway control unit, installation of a communication system between railway officials and trains and also the commencement of the Kandy Suburban Railway Project.

A housing block with 108 flats would also be constructed to relocate families residing on lands adjoining the Kelani Valley line in order to carry out railway development projects.

(Transport Minister Arjuna Ranatunga speaks during a news conference today. Pic by Indika Handuwala)