The Export-Import Bank of Korea approved US$14 million to supply garbage collection compactors to Sri Lanka.
This project will provide 190 garbage compactors to local authorities in all nine Provinces to collect and transfer waste to dumping sites.
Korea Eximbank which operates the ECDF(Economic Development Cooperation Fund) entrusted by Korean Government will finance this project with a high concessional EDCF compact loan of 0% interest rate and 30 year repayment period including ten year grace period.
The project executing agency will be the Ministry of Local Government and Provincial Council and Local Government whereas the National Solid Waste Management Centre under the purview of the same Ministry will function as the project management unit.
The main objective of this project is to improve the solid waste management system through reduction in travel time and maintenance cost of collection vehicles and increase the waste collection quantity.
The supply of garbage compactors project does not have only economic meaning but also diplomatic meaning.
The Korean government's decision to finance this project comes at a significant time as this year 2017 marks the 40th anniversary of diplomatic relations between Sri Lanka and the Republic of Korea.