AIIB approves $280m funding for two projects in Sri Lanka

WCN Editorial Team 8 Apr 2019 ASIA BUILDINGS

The Asian Infrastructure Investment Bank (AIIB) has approved $280m loan for two projects in Sri Lanka to improve housing conditions for low-income communities.

Of the total financing, $200m will be used to construct affordable housing and redeveloping land in Colombo, while the remaining $80m will be used to reduce the risk and damage from landslides in Sri Lanka.

AIIB expects the two projects to improve living conditions for those most in need in Sri Lanka.

AIIB vice-president and chief investment officer Pandian said: “Providing affording housing will improve the quality of life for those in need in Colombo.

“Smarter urban planning will also enable the city to attract more foreign investment and increase its potential as an economic hub for the country.”

The loan will be used to fund the Urban Regeneration Project, which supports construction of about 5,500 housing units and other related infrastructure.

AIIB said: "These housing units will be provided to individuals and families currently living in underserved settlements that are impacted by poor sewer and solid waste management systems and dilapidated housing structures."

The investment is expected to support the design and construction of mitigation or protection measures at areas which have potential landslides risk or landslides have already occurred.

Additionally, the investment supports the review and enhancements to the policy and regulatory systems for landslide management at the local and national level.

AIIB director general Supee Teravaninthorn said: “With global warming contributing to increased risk of both the number and intensity of climatic events in Sri Lanka, landslide mitigation efforts are an important part of ensuring the sustainability of vital infrastructure.

“Our involvement in this project will help us to develop capacity in disaster mitigation, so we can support other members in the planning and implementation of climate-resilient and major disaster prevention projects.”

Separately, AIIB has approved $40m loan to improve a critical section of National Road 13 in the Lao People’s Democratic Republic (Lao PDR) which would directly benefit over half a million people.

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Image: Colombo City in Sri Lanka. Photo: Photo by Anuradha Dullewe Wijeyeratne/Wikipedia.

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