The Asian Development Bank (ADB) has approved a US $300 million loan to help Sri Lanka to boost up their renewable energy use and cut petroleum oil for electricity generation.
Mukhtor Khamudkhanov, principal energy specialist, ADB said, “The country’s dependence on imported petroleum oil hurts the economy and harms the environment. This loan will help Sri Lanka expand the use of renewable energy and have benefits both for poor communities and the economy.”
The first $150 million loan will finance a 30 MW hydropower plant at Moragolla and upgrade transmission lines and other infrastructure in areas, including Northern and Eastern Provinces.
Moreover, the hydropower plant will generate 97.7 million units of hydropower, saving about 72,300 tons of carbon emissions every year. The transmission lines will further reduce annual carbon emissions by 98,400 tons.
On the other hand, environmental safeguards will be incorporated to minimize impacts, and a mechanism will be developed to guarantee river flows so that fisheries will not be harmed by the hydropower plant.
The second tranche, to be delivered in 2016, will include expansion of the 33 kV network to improve electricity distribution and the development of transmission network facilities for power delivery from two 100 MW wind parks that will be built in 2017 and 2020.