COLOMBO, March 2019: The Japan International Cooperation Agency (JICA), a Japanese government lender, will loan Sri Lanka 30 billion Japanese yen ($268m) to build a $ 1.5-billion light rail system in Colombo.
Operating on an elevated track in and around Colombo, the light rail will have a 15.7km line with 16 stations, and is intended to reduce air pollution and “stimulate socioeconomic activities” according to a press statement by JICA.
“It will fundamentally change the face of public transport in this country, ease traffic congestion and improve the environment of Colombo city,” the statement said.
Through the loan, JICA stipulates that a Japanese firm must lead the contract, and if entering into a joint venture with a Sri Lankan firm it must be the leading partner. Japanese technology including trains and electromechanical equipment will be used on the project.
Tendering for the project is due to be begin in March 2020, and the development is due to be completed in April 2026.
The Japanese loan carries an interest rate of 0.1 percent and is repayable over 40 years with a 12-year grace period, JICA said.
The loan will be granted in six stages until 2024 and an agreement to release the first instalment of the loan was signed Monday between JICA, which coordinates official development assistance on behalf of the Japanese government, and Sri Lanka’s finance ministry.
The Japanese agency said the proposed railway system will connect Colombo’s commercial hub with the administrative capital and “significantly reduce travel time in the most congested transport corridor in the country, and the only major corridor currently not supported by railway.”
Light rail is a metropolitan electric railway system which operates single cars or short trains along exclusive right of way at ground level, aerial structures in subways or occasionally on streets and to board and discharge passengers at track or car floor level. The Colombo Light Rail Transit project’s construction is divided into seven phases, with construction of phase 1 to start in 2020. The proposed rail system will be powered solely by electricity and comprises seven light rail transit lines and two high priority lines
Announcing the project last year, Megapolis and Western Development Minister Champika Ranawaka said that the Colombo Light Rail is on track to dramatically transform the transportation system in Sri Lanka.
“The Light Rail Transit Project will not be a white elephant. It has the capacity to repay the loan in full before the stipulated period, “ the minister said. “This project will be a novel breakthrough in the transport sector after 1860, the year in which railways was first introduced to Sri Lanka.”
Nearly one million people enter the city of Colombo on a day to day basis thus causing severe traffic congestion in and around Colombo. City planners have forecast that by 2035 the number of passengers in the main transport corridors within the Colombo Metropolitan Region would rise from 1.9 million to 4.5 million. Hence, a sustainable solution covering the next two decades was required to tackle the transport problem.
” Japanese Firm will be the Leading Partner “……………same as in a project funded by China — China Firm is the leading Partner……….because they know how to carry on the project…&…have the required / disciplined Highly Skilled Professionals and Workers…..
So where is the “hue & cry” by the idiotic elements that Sri Lanka will turn into a colony of Japan…………the same cry during projects by China……….
If only Sri Lankan workers……….JVP will have them on strike from day one…..
Yes, too many gullible idiots in SL can’t understand that spending nearly US $3billion for 15kM of Track with 17stations Ridiculous every kM a Station, it will be slowest electric train in the world.
Good Rajapaksa govt abandoned it and the media report saying it was a Gift was wrong as Japan offered $1.7B Loan trying to Earn money from SL while their Economy in shambles with minus Interest rates. 😎🤷