An Update on Foreign Assistance

1
An Update on Foreign Assistance

• Development Forum 2007

Sujatha Cooray Director General Department of
External Resources Ministry of Finance and
Planning
2
Foreign Assistance at a Glance

• Foreign Assistance received in 2006 accounted
  for
• 17 of the Government expenditure
• 54 of Public investment
• 4.5 of GDP
• reflecting the important contribution towards the
  countrys development efforts.

3
Foreign Assistance Mobilization-2006

• Total commitments US 1220 mn
• Project grants US 195 mn
• Project loans US 1025 mn

4
Major Sectors Financed During 2006

• Road Sector Development US 390 mn
• Power Sector Development US 160 mn
• Water Supply Sanitation US 150 mn
• Education Development US 80 mn

5
Foreign Aid Disbursements -2006

• Total Disbursements by all development partners
  in the year 2006 was US 1052 mn which is the
  highest aid disbursement. These include
• Project Loans US 722 mn
• Programme Loans US 52 mn
• Project Grants US 278 mn
• In addition, there was a capital market borrowing
  of US 100 mn.

6
Foreign Assistance for the Next Three Years
2007-2009

• Project pipeline for the next three years has
  been prepared in terms of the Medium Term
  Budgetary Framework developed within the overall
  policy vision of Mahinda Chintana

7
Foreign Assistance Mobilization Framework

• Growth Target of 8 in the next 6 years.
• Significant up scaling of investments to achieve
  the target.
• Increase investment GDP ratio gradually from 30
  to 38 in ten years.
• External funding to finance part of the Savings
  Investment gap while maintaining debt
  sustainability.

8
Contd

• Mobilization of funding for the development
  projects in priority areas in line with Mahinda
  Chinthana-Vision for a New Sri Lanka
• Broader consultative approach to ensure new aid
  programmes are better targeted and utilization is
  accelerated.
• Investment is expected mainly in support of
  infrastructure development programmes envisaged
  in the Mahinda Randora and make faster progress
  towards achieving the Development objectives.

9
Major Projects 2007 - 2009Major Projects in
the pipeline for which we have already entered
into discussions with the development partners to
secure funding are

• Port Development
• Colombo Port Expansion Project US 300 mn
• Hambantota Sea Port Develop. US 310 mn
• Oluvil Port Project US
  44 mn
• Rehabilitation of KKS Port US
  23 mn

10
Contd

• Road and Railway Sector Development
• Greater Colombo Urban Transport Project (Outer
  Circular Highway) Phase 1 US 185 mn.
• Greater Colombo Urban Transport Project Phase 11
  US 150 mn.
• Road Network Improvement Project US 150 mn.
• Proposed Northern Highway to Jaffna - US 250
  mn

11
Contd.

• Colombo- Katunayake Expressway US 200 mn.
• Improvement of Colombo Matara Railway line US
  100 mn

12
Contd

• Power Sector
• Construction of Kerawalapitiya Combined Cycle
  Power Plant US 210 mn.
• Construction of Jaffna Power Plant
• US 20 mn.
• North East Transmission Development Project US
  30 mn.
• Renewable Energy Development Project US 40 mn.

13
Contd

• Water Supply Sector
• Water Sanitation Sector Development
• US 90 mn.
• Jaffna Water Supply US 65 mn.
• Negombo Water Supply Project US 52 mn.
• Greater Colombo Waste Water Management US
  50 mn.
• Greater Kurunegala Water Supply and Sanitation
  US 18 mn.
• Secondary Towns Water Supply - phase 11
• US 65 mn.
• Ampara Water Supply - Phase III US 92 mn.

14
contd

• Education Sector
• Education Sector Development
• US 70 mn.
• Infrastructure Improvement at South Eastern
  University - US 9 mn.
• Upgrading of Niyagama Technical College - US 9
  mn.
• Fisheries Sector
• Dickovita Fishery Harbour - US 60 mn.
• Equipment for Fishery Harbours
• - US 21 mn.

15
Total Aid Portfolio

• These major projects together with all other
  development projects for which we are making
  progress in securing funding amount to US 4.5
  billion.
• These expected commitments will be planned
  annually, as given below
• 2007 US 2.3 billion
• 2008 US 1.8 billion
• 2009 US 0.4 billion

16
Contd

• Committed Funds available for projects being
  implemented by end 2006
• US 4.5 billion.
• Therefore, total aid portfolio to be utilized
  during the next 3-5 years would be around US 9
  billion.

17
Conclusion

• We, both the government and development
  partners should put our best efforts to make this
  positive outlook a reality

18
Thank You