CDB provides $300 million loan for Rehabilitation and Improvement of Priority Road Project 3 - Phase I (PRP3-I) (Linked to Project ID #46971, #39001 and #39002)
Constant 2017 USD
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Transport and storage (Code: 210)
On March 11, 2014, China Development Bank (CDB) and the Government of Sri Lanka signed a $300 million loan facility agreement [No. 4510201401100000245] for the Rehabilitation and Improvement of Priority Road Project 3 - Phase I (PRP3-I). This loan carried the following terms: 15 year maturity, 3 year grace period, interest rate of 6-month LIBOR plus a 2.95% margin, 0.5% management fee, and a 5% risk (insurance) premium. CDB deposited $300 million in an account controlled by the Central Bank of Sri Lanka on March 28, 2014. PRP3 Phase I was divided into two parts, A and B. The contractors for PRP3-Phase I (A) were China National Aero-Technology International Engineering (CATIC - ENG) and Xi'an Dagang Machinery Co. Ltd. The contractors for PRP3-Phase I (B) were CATIC and Hunan Construction Engineering Group Corporation (Hunan). Under PRP3- Phase I (A), 6 roads were rehabilitated: 1. Ratnapura - Palawela - Karawita Road: 00.00km - 21.28 km 2. Veyangoda -Ruwanwella Road: 12.4 km - 32.2 km (19.8 km total length). This section also included the rehabilitation of a bridge. 3. Meegahajandura-Kumaragama Road: 0.00 km - 8.8 km 4. Galle-Udugama Road: 0.00 km - 35.35 km 5. Hiniduma-Opatha-Pitabaddara Road: 0.00 km - 31.5 km. This section also included the rehabilitation of a bridge. 6. Mawanella-Hemmathagama-Gampola Road: 0.00 km - 26.00 km.Under PRP3 - Phase I (B), 6 roads were rehabilitated: 7. Kiriella-Nedurana-Eheliyagoda Road: 0.00 km - 14.75 km. Contractor: CATIC 8. Ratnapura-Wewelwatte Road: 0.00 km - 27.50 km. Contractor: CATIC 9. Kandy-Jaffna Road: 1.65 km - 3.9 km (2.25 km total length). Contractor: Hunan 10. Marawila-Udubaddawa Road: 0.00 km - 19.55 km. Contractor: Hunan 11. Rambukkana-Katupitiya Road (0.00 km - 9.81 km) and Dambokka-Katupitiya Road (0.00 km - 8.75 km). These two roads were rehabilitated at the same time and are considered the same project by the Sri Lanka Ministry of Highways and Investment. Contractor: Hunan 12. Ayagama-Egaloya Road: 0.00 km - 23.00 km. Contractor: CATIC. PRP3 Phase I commenced its activities on September 9, 2014 and it was scheduled to be completed by July 17, 2017. However, as of September 30, 2019, PRP3-II was still ongoing.
The interest rate is coded based on the 6-month LIBOR at time of signing of the loan agreement. The average 6-month LIBOR rate in March 2014 was 0.331%. The total interest rate is therefore coded as 0.331% + 2.95%, or 3.281%. The Priority Road Project had three phases; see Project ID #46971 (PRP1), Project ID #39001 (PRP2), and Project ID #39002 (PRP3-Phase 2) for more details.
Number of official sources
Number of unofficial sources
Receiving agencies [Type]
Government of Sri Lanka [Government Agency]
Implementing agencies [Type]
China National Aero-Technology Import & Export Corporation (CATIC) [State-owned Company]; Hunan Constructing Engineering Group Corporation [State-owned Company]; Xi’an Dagang Road Machinery Co., Ltd. [Private Sector]