COLOMBO, Oct. 8 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) will provide 52 million U.S. dollars in sovereign-backed financing to help Sri Lanka unlock its renewable energy potential and advance sustainable development, the country's Ministry of Finance said in a statement on Wednesday.
The money will be used to develop a transmission line project, involving the design, supply, construction, testing, and commissioning of a 220-kilovolt single-circuit underground cable system, the ministry said.
The project will complement a previous line commissioned in 2019, as that line will soon be insufficient to meet the projected electricity demand in the Greater Colombo area. The new transmission line is critical for ensuring an uninterrupted power supply, maintaining grid stability, and enabling the transfer of renewable energy from the northern and eastern regions to major load centers in Colombo, the ministry said.
Once operational, the project is expected to benefit local communities, urban services, and businesses in the Greater Colombo development area by providing a stable and reliable electricity supply. It will also directly support the growing power needs of the upcoming special economic zone while indirectly reducing the risk of major blackouts, delivering significant economic and social benefits, the ministry said.
The project stands as a strong testament to the deepening partnership between AIIB and Sri Lanka, and so far AIIB has supported five projects in the country, with total financing of 534 million dollars across the energy, transport, and urban sectors, driving sustainable growth and development, according to the ministry. ■
