Increasing volume of Solid waste generated in urban and sub urban areas has become a nationwide problem and rapid growth of population in urban areas, recent changes in consumption pattern and growing industrial and economic activities have been directly associated with this chronic problem of country.
Due to the present inadequate capacity for collection and transportation of solid waste and outdated technology, used for handling solid waste by local authorities, various health and other hazardous situations occurred in urban areas. Currently, most of the garbage is being transported by open trailers attached to the tractors. As a prerequisite to promote a sustainable solid waste management system, the capacity of waste collection and transportation of Local Authorities needs to be improved.
In this context, the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank (Exim Bank) of Korea has agreed to provide two loans in Korean Won not exceeding equivalent to US $ 14,000,000 to supply 190 Nos collectors for collecting garbage to improve the garbage collecting capacity of 84 local authorities in Sri Lanka.
The interest rate per annum will be 0% with a repayment period of 30 years including a grace period of 10 years.
The signing of the Loan Agreement related to the above loans took place today at the Ministry of Finance and Planning. Loan Agreement was signed by Dr.RHS Samarathunga, Secretary, Ministry of Finance and Planning and Mr. Jung Sung-soo, Chief Representative of the Export-Import Bank of Korea. The projects will be implemented by the Ministry of Provincial Councils, Local Government and Sports.