The Asian Infrastructure Investment Bank’s (AIIB) has approved a USD200 million loan for Colombo Urban Regeneration Project in Sri Lanka which will improve housing conditions for low-income communities in Colombo by constructing affordable housing and redeveloping land.

The Project will support the construction of about 5,500 housing units and other related infrastructure in Colombo. These housing units will be provided to individuals and families currently living in underserved settlements that are impacted by poor sewer and solid waste management systems and dilapidated housing structures. 

The total project cost is estimated at USD287 million.

A Project Management Unit (PMU) will be formally established in Urban Development Authority before loan effectiveness and will be directly responsible for project implementation, management, monitoring and progress reporting to the Bank. To satisfy the Bank’s operational standards, the PMU will include technical, planning, procurement, financial management, information technology and environmental and social specialists.