The Government of Sri Lanka has arranged a loan of US$ 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 the operation was signed by Dr. Harshana Suriyapperuma, the Secretary to the Treasury, and David N. Sislen, the Division Director for Maldives, Nepal, and Sri Lanka of the World Bank Group, on behalf of the government and the IDA, respectively.
The Ministry of Finance stated that the grid capacity has been hindered the utilization 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.
The 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, mobilizing private sector participation, and enhancing institutional capacity to sustain long-term sector reforms, the Finance Ministry noted.
The Finance Ministry added that the total project cost is approximately US$ 60 million, out of which US$ 30 million will be provided by the World Bank under the first phase of the project while the remaining US$ 30 million is expected to be obtained by Sri Lanka from the World Bank under the second phase.
The project will be implemented by the Ceylon Electricity Board, in coordination with relevant agencies such as the Ministry of Energy, the Finance Ministry added.
