Annual Report 2010 - Ministry of Finance and Planning
Annual Report 2010 - Ministry of Finance and Planning
Annual Report 2010 - Ministry of Finance and Planning
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
5 | FOREIGN FINANCINGAbout 70 percent <strong>of</strong> total disbursementin <strong>2010</strong>, were reported through theprojects funded by the Government<strong>of</strong> China, Japan <strong>and</strong> the AsianDevelopment Bank. Disbursement <strong>of</strong>USD 845 million from the Government<strong>of</strong> China was reported mainly forimplementation <strong>of</strong> the Puttalam CoalPower Project (USD 451.5 million),Hambantota Port Development Project(USD 115 million), Mattala InternationalAirport (USD 48.9 million), Colombo-Katunayake Expressway (USD 68.6million) <strong>and</strong> Supply <strong>of</strong> 13 Nos <strong>of</strong> DieselMultiple Units to Sri Lanka Railways(USD 30.3 million). The total funddisbursement from the Government<strong>of</strong> Japan in <strong>2010</strong> was USD 325 million.Of this amount, USD 302 million wasdisbursed through loans <strong>and</strong> thebalance USD 22.6 million was disbursedthrough grants.Water Sector Development Project(USD 52.8 million), Greater ColomboTransport Development Project(USD 52 million), Upper KotmaleHydro Power Project (USD 58.4million), Colombo City ElectricityDistribution Development Project(USD 24.8 million) <strong>and</strong> SouthernHighway Construction Project (USD30.4 million) were the main Japanesefunded projects that reported higherdisbursements in <strong>2010</strong>.Asian Development Bank (ADB)disbursed USD 342 million in <strong>2010</strong>. Ofthis amount, USD 306.3 million wasdisbursed through loans <strong>and</strong> USD35.8 million through grants. Fairlyhigher disbursements were reportedfrom the Colombo Port ExpansionProject (USD 72.3 million), NationalHighway Sector Project (USD 35.4million), Conflict Affected AreasRehabilitation (USD 27.4 million),Tsunami Affected Areas RehabilitationProject (USD 34.2 million) <strong>and</strong>Southern Expressway Project (USD18.7 million).Utilization Rate <strong>of</strong> Foreign<strong>Finance</strong>Foreign finance utilization rate (orforeign finance disbursement ratio)indicates the efficiency <strong>of</strong> utilization <strong>of</strong>foreign financing committed by donors<strong>and</strong> other lending agencies. Theutilization ratio (total disbursement tototal committed undisbursed balance)depends on the average project loanportfolio life. The average projectperiod <strong>of</strong> the foreign financed portfoliois between 4-5 years <strong>and</strong> hencethe satisfactory level <strong>of</strong> the overallutilization ratio should be between 20to 25 percent.USD Mn25002000150010005000Chart 5.4 > Utilization <strong>of</strong> Foreign Financing byEconomic Sectors 2005 - <strong>2010</strong>2005 2006 2007 2008 2009 <strong>2010</strong>Roads & Transport Power & Energy Ports & Aviation WatersupplyDisbursements for Infrastructure Total DisbursementsThe utilization <strong>of</strong> foreign financing hasincreased during the last five years.With the higher level <strong>of</strong> commitments,the utilization rate in relation to theinfrastructure development projectshas increased steadily since 2005,contributing to the improvement in theoverall aid utilization rate. In 2005, thetotal utilization ratio in relation to theinfrastructure development projectswas 28 percent <strong>and</strong> it has increasedto 76 percent by <strong>2010</strong>. This reflectsacceleration <strong>of</strong> the implementation<strong>of</strong> infrastructure projects in line withthe targets situated in the EconomicDevelopment Policy Framework <strong>of</strong>the Government: Mahinda Chintana -Vision for the Future.250
Change language