The bank has several hydro-related clean energy initiatives already under way in Sri Lanka. (HNN 11/11/08)
The ADB Board agreed April 14 to lend US$135 million from its ordinary capital resources for 25 years at the London interbank offered rate and US$25 million from its Asian Development Fund for 32 years at 1 percent interest for the clean energy and access improvement project. The loans are to cover 85 percent of the total project cost of US$1888.2 million.
The Asian Development Bank (ADB) has approved US$160 million in loans to Sri Lanka to improve electricity services, including support for renewable energy that is to add 200 MW of hydropower to the national grid.
ADB said the renewable energy segment of the 10-year development plan also is to encourage private sector investment in the industry.
ADB previously said it was considering lending additional funds to the ongoing program, which is to enhance reliability and remove grid constraints to allow the addition of 200 MW of small hydropower and other clean energy projects.