Korea Eximbank approves USD 14 million for Sri Lanka

(UTV|COLOMBO) – The Export-Import Bank of Korea has approved US$14 million for supply of garbage collection compactors to Sri Lanka, the Korean Embassy in Sri Lanka said.

The project will provide 190 garbage compactors to local authorities in all nine Provinces of Sri Lanka in order to collect and transfer large amount of waste to dumping sites in an efficient and economical manner.

Korea Eximbank which operate ECDF(Economic Development Cooperation Fund) entrusted by Korean Government will finance this project with a high concessional EDCF compact loan of 0% interest rate and 30 year repayment period including 10 year grace period.

The project executing agency will be the Ministry of Local Government and Provincial Council and Local Government whereas the National Solid Waste Management Centre under the purview of the same Ministry will function as the project management unit.

The main objective of this project is to improve the solid waste management system through reduction in travel time and maintenance cost of collection vehicles and increase the waste collection quantity. Following the tragic garbage dump collapse in Meethotamulla, the solid waste management become a pressing concern in Sri Lanka.

Currently, approximately 3/4 of solid wastes generated in urban areas are disposed through unsanitary open dumping due to the insufficiency of waste collection system. Further, there is a serious shortage of waste collection equipment in Sri Lanka where only 11.6% of solid waste is collected by compactors. In this context, this project will not only help prevent further environmental pollution and damage that was caused by unsanitary open dumping due to the insufficiency of waste collection system but will also enhance health and sanitary lifestyle of people in the long-run.

The supply of garbage compactors project does not have only economic meaning but also diplomatic meaning. Korean government’s decision to finance for this project comes at a significant time as this year 2017 marks the 40th anniversary of diplomatic relations between Sri Lanka and the Republic of Korea.

The Export-Import Bank of Korea (Korea Eximbank) provides Official Development Assistance (ODA) loans through EDCF (Economic Development Cooperation Fund) for international development and cooperation. The bank provided its first ODA loan for the rehabilitation of the Colombo-Galle road (A2) in 1990. As of now, Korea Eximbank entrusted by the Korean government with the EDCF has approved USD 771 million for 27 development projects in Sri Lanka.

Korea Eximbank also provides financing for international trade and overseas investment, to promote bilateral economic cooperation. Since 1978, Korea Eximbank has provided US$ 386 million both for trade between Sri Lanka and Korea and for Korean companies’ foreign direct investments in Sri Lanka.

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