The World Bank Group authorized a brand-new $150 million program to support Sri Lankas move toward clean, reliable, and inexpensive energy.The programSecure, Affordable, and Sustainable Energy for Sri Lankawill support the country reduce its reliance on costly nonrenewable fuel source imports and accelerate its shift toward solar and wind, the World Bank Group said in a statement.This program will help deliver clean, cost effective electrical power to households and services throughout Sri Lanka, said David Sislen, World Bank Division Director for the Maldives, Nepal and Sri Lanka.
We are delighted to work with both the government and economic sector to make this shared vision a reality.The program will support new solar and wind energy tasks that will add 1 gigawatt of tidy electricity to the grid bringing Sri Lanka closer to its objective of creating 70 percent of its electricity from sustainable sources by 2030.
The program is also expected to activate more than $800 million in personal investment, helping to lower electrical energy expenses and improve dependability for households and businesses.A core function of the initiative includes $40 million in World Bank Group warranties in the first phase.
This will help in reducing dangers for personal financiers and energy producers.
It is targeted to derisk payment responsibilities from Ceylon Electricity Board (CEB), thus enhancing financiers confidence and attract funding on more beneficial terms.The World Bank Groups private sector arms - the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will provide complementary support through direct investments and political danger insurance, the declaration stated.Sri Lankas energy transition is an opportunity to broaden clean energy, enhance energy gain access to, and construct long-term durability, stated Imad N Fakhoury, IFCs Regional Director for South Asia.
Attaining this requires close partnership and financial investment from both public and economic sectors.
As one World Bank Group, we are distinctively placed to enable and activate private capital and foster partnerships that provide cost effective, trusted electrical power while driving sustainable development and creating tasks that enhance Sri Lankas economy and expand opportunities for its people.MIGA will support the program by providing political threat insurance to help in reducing unpredictability for international investors.Investors need confidence to take vibrant steps in brand-new markets, said Muhamet Fall, Director of Operation with MIGA.
Our warranties will assist de-risk tasks and attract the personal capital required to scale up clean energy in Sri Lanka.The program also supports the upgrades to Sri Lankas electricity grid, allowing it to much better deal with renewable energy and minimize power interruptions.
This modernization will assist support electricity prices and enhance energy gain access to for homes and businesses across the nation, it added.In addition, the initiative will supply technical support to the CEB to strengthen preparation, procurement, and operations, and supports government-led reforms to improve competitiveness, utility management, and regulative oversight.By using the complete breadth of the World Bank Groups tools - funding, understanding, and economic sector partnerships - the World Bank Group is helping Sri Lanka broaden energy gain access to, attract private investment, and lay the foundation to power Sri Lankas long-lasting financial growth.