ADB approves USD 3M grant

Image from Mint

A Grant Agreement for the Additional Financing of Health Systems Enhancement Project amounting to  USD 3 million has been approved by the Asian Development Bank (ADB). 

The loan is to be provided by the ADB-managed Japanese Fund for Poverty Reduction (JFPR). The relevant agreement was signed yesterday (07) by Secretary to the Ministry of Finance,  S. R. Attygalle, and Country Director, ADB Resident Mission, Chen Chen. In early 2020, with the outbreak of COVID-19 pandemic, USD 15 million from the ongoing Health System Enhancement Project (HSEP) was reallocated for emergency activities. The additional financing will replenish reallocated funds from the ongoing project used for COVID-19 response, and will be used to scale-up the outputs of the ongoing project, addressing the government’s urgent financing requirements to support and manage the third wave of the COVID-19 pandemic.  

Accordingly, the funding will be used for the scaling up of the capacity of molecular biology laboratories, increasing accessibility to emergency medical equipment in hospitals, expanding high dependency and intensive care units, expanding oxygen accessibility, and increasing the availability of consumables like surgical masks, personal protection equipment, reagents and other consumables for PCR testing and screening of COVID-19. 

Earlier this month, the ADB has approved a $110 million loan as additional financing for the ongoing HSEP currently improving the primary health care system (PHC) in Sri Lanka. The HSEP, approved in October 2018, aims to upgrade primary medical care units and division hospitals in the Central, North Central, Sabaragamuwa, and Uva provinces, and provide crucial resources for the immediate emergency response amidst the COVID-19 pandemic. 

The scope of the project has been expanded to provide additional support to include and strengthen the country’s COVID-19 response, and is expected to scale up the capacity of at least 25% of secondary and tertiary level hospitals to treat and manage COVID-19. 

The total project cost is estimated as USD 123 million including the Government contribution of USD 10 million, and is scheduled to be completed by 30 November 2025.