7 August 2024 02:53 am Views - 1003
ADB Country Director Takafumi Kadono (left) and Treasury Secretary Mahinda Siriwardana signing the loan agreement in Colombo
The Asian Development Bank (ADB) and the government of Sri Lanka inked this week the loan agreement for power sector reforms in the country.
The loan agreement is for US$ 100 million for sub programme 1 of a policy-based loan (PBL) to support and facilitate reforms aimed at enhancing the financial sustainability of the country’s power sector.
This loan is part of a broader programmatic approach PBL, consisting of three sub programmes totalling US$300 million, dedicated to transforming the power sector.
ADB approval for the programme was given on 11 July.
The programme will complement the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) arrangement and bolster the operational efficiency and competitiveness of the country’s power sector. It will also help create a conducive environment for private investments, boosting renewable energy development, and modernising power grids.
To help accelerate investments in renewable energy, the programme will assist multiple initiatives under renewable energy expansion plans for 2023–2030.
The key initiatives include implementing a periodic revision of feed-in tariffs for small power plants and rooftop solar users, facilitating integration of renewable energy projects into the national grid, and effective application of a competitive procurement framework for renewable energy projects.
The programme will support increased women participation in the power sector by developing policies to promote equitable participation of female customers, female entrepreneurs, and women and disadvantaged community groups.