Sri Lanka to receive US$ 260 million grant assistance from India to construct houses for IDPs

Jan 12, Colombo: Sri Lanka cabinet has given approval for the government to enter into a Memorandum of Understanding (MoU) with India to receive US$ 260 million grant assistance to construct 49,000 housing units for the Internally Displaced Persons (IDPs) in the Northern and Eastern provinces.

"The Government of India has agreed to provide grant assistance in a sum of Indian Rupees 13.19 billion or approximately US$ 260 million for construction of 49,000 housing units for IDPs in the Northern and Eastern provinces," Cabinet spokesman Keheliya Rambukwella said Thursday.

Sri Lankan President Mahinda Rajapaksa in his capacity as the Minister of Finance and Planning has submitted the proposal.

The President will sign the MoU between the two governments for the housing project that will be completed in three stages.

Under the first phase of the project, 38,000 houses are to be constructed at a cost of Rs. 550,000 per house. Payments are to be made in four installments directly to the bank accounts of the beneficiaries.

In the second phase, repair work of about 5,000 houses in the Northern and Eastern provinces will be carried out. The payments will be made in three installments to the beneficiaries.

The third phase will see the construction of 6,000 homes out of which 4,000 are to be built in the Central and Uva Provinces for tea estate workers.

The presidential Task Force for Resettlement, Development and Security of Northern Province will supervise the Northern Province components of the project, while the Ministry of Economic Development will oversee the project carried out in the East, Central and Uva provinces.

It is expected to formalize the agreement when India's Minister of External Affairs S.M. Krishna visits the island for a four-day official visit on January 16th. Krishna will be visiting the North to review the progress of the construction of 1,000 houses under the pilot project which is nearing completion now.
Source : Internet