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Sri Lanka : ADB sanctions $300 million loan to boost use of RENEWABLE ENERGY

July 18, 2014

A $300 million (221.7m) loan has been sanctioned by the Asian Development Bank (ADB) to help Sri Lanka cut its reliance on imported oil and promote the use of renewable energy.

A 30MW hydropower plant at Moragolla in Central Province, would be financed from half of the loan as well as upgrade transmission lines and other infrastructure in needy areas .

It is anticipated that the plant is to generate an extra 97.7 million units of clean energy, saving more than 72,000 tonnes of carbon emissions every year.

The remaining fund is expected to be widened by 2016, would aid to extend the 33 kilovolt medium voltage network to develop distribution of electricity to consumers. It will also fund the construction of transmission lines to transfer power from two 100MW wind farms to be constrcuted in the Northern Province.

As per Mukhtor Khamudkhanov, ADB Principal Energy Specialist, The country s heavy dependence on expensive imported petroleum oil hurts the economy, undermines energy security and harms the environment. This loan will help Sri Lanka expand the use of renewable energy for power generation and have major benefits both for poor communities and the broader economy.

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Source: TendersInfo (India)

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