Finance Ministry Secretary Dr. R.H.S. Samaratunga and World Bank Country Director for Sri Lanka and Maldives Ms. Idah Z Pswarayi – Riddihough exchanging the Loan Agreement at the Ministry of Finance yesterday. The International Development Association (IDA) of the World Bank has provided a loan facility of USD 70 million to strengthen the service provided by 134 Local Government Authorities in the Northern, Eastern, North Central and Uva Provinces under the Local Development Support Project (LDSP).
This development support project is designed to strengthen local authorities’ capabilities to deliver services to communities in a responsive and accountable manner and to support economic infrastructure development in participating provinces by Strengthening Local Government Planning Systems, Improving Local Services and Economic Infrastructure and Institutional Development etc.The Government had requested the World Bank Group to provide financial assistance to implement the above priority, for which the International Development Association (IDA) of the World Bank has shown their interest to mobilize its funds through a credit of United States Dollars 70 million. The total estimated cost is approximately USD 100 million, out of which IDA credit is USD 70 million, Government will contribute USD 7 million and the balance will be financed by the European Union (EU) as a grant.The overall responsibility of the implementation of this project lies with the Ministry of Provincial Councils, Local Government and Sports. The signing of this Loan Agreement took place yesterday, May 14 at the Ministry of Finance by Dr. R.H.S. Samaratunga, Secretary, Ministry of Finance on behalf of the Government of Sri Lanka and Ms. Idah Z Pswarayi – Riddihough, World Bank Country Director for Sri Lanka and Maldives on behalf of the World Bank.