The Government entered into a agreement with the Asian Development Bank to obtain a loan of USD 60 million from the Asian Development Fund to implement the Pura Neguma - Local Government Enhancement Sector Project.
The funds will be utilized to implement the safe drinking water supply schemes for the Chronic Kidney Disease prone areas in the districts of Anuradhapura, Polonnaruwa, Matale, Badulla, Moneragala, Puttalam and Kurunegala.
The project will also contribute to improve priority infrastructure and basic services delivery in 29 Pradeshiya Sabhas in Western, Southern, Central, North Western and Uva Provinces. Proceeds of the loan will also be utilized for advancing policy reforms of local governments and strengthening their capacity.
Secretary to the Ministry of Finance, Dr. R. H. S. Samarathunga and Country Director of ADB Sri Lanka Resident Mission, Sri Widowati signed the agreement on behalf of Sri Lanka and the ADB respectively at the Ministry of Finance on Wednesday.
The ADB had also previously provided US $ 59 million for projects ending December 2016.
This earlier financial assistance was provided for improvement of basic infrastructure facilities such as providing water supplies, development of road, drainage and culverts, maternity and child care centres at local government areas in the seven provinces. One hundred and eight Local Government institutions were provided with Rs 50 million each and 147 out of 184 projects have been completed. The total investment cost of the project under the agreement will be US$ 67.84 million and the Government’s contribution will be US$ 7.84 million.
Around 75 per cent of the loan will be utilized for water supply schemes in CKD prone areas and the rest for the local infrastructure and capacity building in local authorities selected for the project.
The Ministry of Provincial Councils and Local Government will be the Executing Agency of the project while respective provincial councils will implement the project at provincial levels.