Chinese loans for lucrative road building contracts in the North.

Click Here-The Island: "Northern Road development with Chinese aid
September 1, 2010, 9:01 pm
A major road rehabilitation and development project in the Northern Province is to be undertaken by the Government with Chinese financial assistance.
Accordingly, 332km of roads, including the Kandy-Jaffna A9 highway, will be developed and modernised on a proposal by President Mahinda Rajapaksa.
This road development project, covering most of the Northern Province is expected to revive the economic activities of the northern communities who have suffered economically for a long period due to terrorism. It is also estimated that the economic benefits of these projects to the country as a whole will be far in excess of the financial cost.
Accordingly, 155 km length of Kandy-Jaffna A9 highway from
Galkulama to Jaffna would be rehabilitated and modernised as part of the main gateway to the Northern Province, the Government Information Department said yesterday.
The other roadways that will be developed under this project are the Jaffna-Point Pedro road, Puttur-Meesalai road and the Jaffna-Palali road.
Rehabilitation and improvement of 95km length of roads will also take place covering the areas of Mulativu-Kokilai-Pulmudai, Oddusudan-Nedunkerney and Mullativu-Puliyankulam, as separate projects.
The total cost of the project will be US 355 million of which 85 per cent will be financed by the Government of China while the local component of 15 percent will be borne by the government of Sri Lanka."