(SeeNews) - Jul 15, 2014 - The Asian Development Bank (ADB) said today it would extend a USD-300-million (EUR 220m) loan to Sri Lanka to help it increase the deployment of renewable energy.
The financing will be distributed in two USD-150-million tranches, the first one of which will back the construction of a 30-MW run-of-the-river hydropower plant (HPP) in Central Province and finance transmission capacity upgrades and other infrastructure projects. When up and running, the said HPP is expected to generate 97.7 million kWh of electricity and offset about 72,300 tonnes of carbon dioxide (CO2) emissions.
The second portion of the loan, to be provided in 2016, will help expand the 33-kV power distribution network and develop transmission network facilities that will enable the connection of two 100-MW wind farms that will be constructed in Northern Province between 2017 and 2020.
The dual-tranche credit facility will support the country in its efforts to lower its dependence on petroleum oil for power production. Sri Lanka aims to source from renewables 20% of its total power by 2020.
Activities under the project are to be wrapped up in late 2020 and will also be financed with up to USD 60 million from the French Agency for Development and USD 80 million from the government of Sri Lanka.
(USD 1.0 = EUR 0.735)