Rs. 6,870 million to empower failed Local Govt. Bodies

COLOMBO: The Asian Development Bank(ADB) has granted Rs.6870 million to the Sri Lanka Government to empower financially failed Local Government Bodies and enhance the economic and life standard of the respective areas, Local Government and Provincial Councils Ministry sources said.

Accordingly the Local Loans and Development Fund (LLDF) which comes under the purview of the Local Government and Provincial Council Ministry will operate the project which should be completed before 2011.

Ministry sources added that this would be the biggest investment in infrastructure development of 68 Local Bodies implemented in 2006.

The LLDF hope to grant these loans for the infrastructure development projects such as Community Water Supply Schemes, development of roads, Solid Waste Management, Water and Sewerage Systems development, Community Health Institutes, development of libraries and Public Parks of Local Bodies.

The LLDF's procedure of issuing loans differ according to the nature of Local Bodies whereas 60%, 50%, 40% will be granted to Pradeshiya Sabha's, Municipal Council's and Urban Council's respectively.

"The allocation of these funds is targeted for the infrastructure development and Ministry needs to extend the loans for every Local Government institution shortly", Local Government and Provincial councils Minister Janaka Bandara Tennakoon said expressing his view about the ADB assisted project.