ADB lends $600m to Sri Lanka, Uzbekistan

The Asian Development Bank (ADB) said Tuesday that it has approved loans totaling 600 million U.S. dollars for Sri Lanka and Uzbekistan.
The Manila-based lender said Sri Lanka will get a dual-tranche loan amounting to 300 million U.S. dollars. ADB said the loan will help boost Sri Lanka's use of clean energy and cut its reliance on petroleum oil.
The first 150 million U.S. dollars tranche will finance a 30- megawatt, run-of-the-river hydropower plant at Moragolla in Central Province and expand and upgrade transmission lines in other areas.
The second tranche, which is expected to be delivered in 2016, will include expanding the 33 kilovolt medium voltage network to improve distribution of electricity to consumers in Sri Lanka's Northern Province.
In addition to ADB funds, there will be cofinancing of up to 60 million U.S. dollars from France's Agency Francaise de Developpement and counterpart funds of 80 million U.S. dollars from the Sri Lankan government. The program, which costs a total of 440 million U.S. dollars, is expected to be completed by late 2020.
Meanwhile, ADB has also approved a loan of 300 million U.S. dollars to upgrade Uzbekistan's Takhiatash thermal power plant to meet rising electricity demand in the Karakalpakstan and Khorezm regions.
The amount will be used to build two new energy-efficient combined-cycle gas turbines of up to 280 megawatts each, while decomissioning three existing steam turbine units.
Along with ADB's assistance, the Uzbekistan Fund for Reconstruction and Development will provide a 270 million U.S. dollars loan. Uzbekenergo and the government of Uzbekistan will extend a combined 130 million U.S. dollars for a total investment cost of 700 million U.S. dollars.
The project will run for six years with an estimated completion date of end-October 2020.