Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Financing for Roads and HighwaysThe total commitment of foreign financingfor the road and transport sectorhas been raised from USD 10 millionin 2005 to USD 1,518 million in 2010.Foreign financing component of thetotal road investment in 2005 was Rs.8,600 million and it has increased toRs. 44,600 million in 2010.Continuous support has been obtainedfrom the Asian Development Bank(ADB), the World Bank (WB), and Governmentsof Japan, UK, Korea, Kuwait,and France to improve the conditions ofexisting road network and to constructnew expressways. The Government ofChina, a new development partner forthe road sector contributes in large.During 2005 – 2010, the total commitmentfor road network improvementwas approximately USD 2,411million of which 98 percent wasforeign loans. Furthermore, aroundUSD 1,500 million is expected fordevelopment of road sector in nextthree years. Around 89 percent of thetotal commitments have been obtainedfrom China, Japan, ADB and theWorld Bank for the development ofroad sector. The total disbursementswere USD 1.3 billion of which accounted82 percent from the four majordevelopment partners.The increased commitments have beenTable 5.6 > Commitments and Disbursements for Road Sector,2005 - 2010 (USD Mn)CommitmentDisbursementChina 729 65Japan 609 430ADB 519 342World Bank 297 173UK 127 122Other 131 99Total 2,411 1,231Source: Department of External Resourcesinvested on construction of expresswaysand improvement of the existing roadnetwork. During the last six year period,approximately 2,360km of nationalroads have been developed with foreignloans and grants and another 3,260kmof national roads will be rehabilitated by2015. The progress of the developmentof the national road network is given inmap 5.1.Chart 5.5 > Financing Pattern on Roads 2005 - 2010120000Chart 5.6 > Commitments 2005 - 2010 (USD Mn)Investment (Rs. Mn)1000008000060000400002000069250167002005 2006 2007 2008 2009 2010YearGrant Loan Export CreditDomestic FundsForeign ResourcesSource: Department of National BudgetSource: Department of External Resources253