Commitments and Disbursements of Foreign Loans and Grants in 2002

Foreign loans and grants committed (agreements signed) and disbursements (utilization of committed funds) are normally recorded in the currency of the loan and grant. There were 12 currencies in which commitments and disbursements took place during 2002. The Yen, SDR, US$, Euro and Saudi Arabian Riyal were the five currencies in which the largest commitments took place. The Won replaced the Saudi Arabian Riyal in the top five currencies[1] when disbursements were reviewed.

The analysis of commitments and disbursements requires the conversion of loan and grant currencies into either the Sri Lanka Rupee or US$. A choice has to be made on the appropriate currency rate that should be used for these conversions. This could be the annual average, daily, mid-year or end-year rate. The annual average rate was used for the conversion into US$ in this analysis. Further, exchange rate at transaction date was used for the conversion of loan and grant currencies into Sri Lanka Rupee.

Commitments

Loan and grant agreements (including technical assistance) signed with donors and creditors amounted to US$890 million in 2002. These were denominated in the Yen, US$, SDR and Euro and were equivalent to US$ 319, 240, 240 and 63 million respectively. Japan has continued to be the largest donor concluding agreements for Yen 34 billion including a commitment of Yen 33.3 billion (US$ 249 million) for the Upper Kotmale Hydropower project. Further, an export credit of Yen 6.3 billion (US$ 51 million) was committed by the ANZ Bank for the second phase of the Ampara Water Supply Project.

Agreements designated in US dollars and in SDR were the second and third largest categories. They were program loans from the Asian Development Bank (ADB), credits from India and grants from the USA and UN agencies such as the World Food Program (WFP) and United Nations Children’s Fund (UNICEF). Concessional credits from the ADB and the World Bank totaling SDR 184 million were committed for projects and programs in areas such small and medium-scale enterprises (SME) and power and renewable energy. Agreements in the Euro were concluded with the European Investment Bank for on-lending and grants from Germany and the Netherlands.

Bilateral and multilateral donors and creditors accounted for 41% and 48% of total commitments during 2002 respectively . The balance 10 percent was committed by export credit agencies and commercial banks. The Organization of Petroleum Exporting Countries (OPEC) and Saudi Funds and Norway and Sweden (both outside the Euro zone) committed a total of US$ 31 million.

Twenty loan agreements and 35 grant agreements were signed in 2002. In addition, 10 existing grant agreements were enhanced. Commitments increased by 18% in 2002 in comparison to 2001. Further loans accounted for 88 percent of total commitments in 2002 compared to 90 percent in 2001.

Disbursements

The utilization of loans and grants during 2002 was the equivalent of US$ 572million compared to the forecast of US$550 million for the year. This is a remarkable achievement being in excess of 100 percent. Disbursements were made up of US$ 495 million in loans and US$ 77 million in grants. The US$ equivalent of the five main currencies of disbursement were 210 million in SDR, 204 million in Yen, 90 million in US$, 27 million in Euro and 13 million in Won making up 96 percent of total disbursements. The balance US$ 23 million was disbursed in Swedish Kroner, Norwegian Kroner, Kuwaiti Dinar and Pounds Sterling. The proportion of funds disbursed by multilateral, bilateral and export credit agencies were 47, 44 and 9 percent respectively.

As in the previous five years, the disbursement of funds from Japan at US$ 185 million was the highest in 2002. However, it was lower than the target for the year and the disbursements in 2001. Disbursement of funds from the ADB and World Bank at US$ 155 and 94 million respectively exceeded the target and performance of the previous year. The three major donors accounted for 77% of total disbursements. The balance was made up by India, Korea, Germany, the UN agencies and the Exim Bank of China. Both multilateral and export credit agencies exceeded the target and bilateral agencies were lower.

Funds were disbursed from 93 project and program loans and 140 technical assistance grants during 2002. The equivalent of US$ 100 million was disbursed from agreements signed in 2002 and accounted for 18 percent of total disbursements. However, the amount was under 10 percent of agreements signed during the year. The significant increase recorded was due to the quick disbursement of program loans from the ADB for the SME and power sectors, the World Bank for the renewable energy project, ANZ Bank’s Export Credit, as well as grants from Japan, Norway, Sweden and the UNICEF.

Loans accounted for 87 percent of total disbursement in 2002 compared to 86 percent in 2001.

It is likely the estimate of actual disbursements in 2002 will be revised upwards due to the late reporting by a few donors, mainly in respect of grants. A revised estimate will provided by mid-year.

Commitment and Disbursement of Foreign Funded Loan/Grant Projects - 2002
In L/G Currency, US$ & Rupee million
Donor/ Lender / Type
Loan(L)
Grant(G) / Currency / CUB as at 01/01/2002 / Commitment / Disbursement
L/G Currency / In US$ /
L/G Currency / In US$ / Forecast / Actual
In US$ /
L/G Currency / In US$ / In Rs.
Bilateral / - / 1,500.5 / 369.0 / 304.5 / 249.7 / 23,871.9
Japan / L / YEN / 157,791.0 / 1,154.0 / 33,265.0 / 249.2 / 200.0 / 20,212.3 / 161.1 / 15,409.8
G / YEN / 3,606.0 / 27.5 / 1,153.0 / 9.2 / 22.0 / 3,006.1 / 24.0 / 2,300.3
France / L / EUR / 6.5 / 6.0 / 0.0 / 0.0 / 0.5 / 1.1 / 1.1 / 106.4
Australia / G / AUD / 5.3 / 2.7 / 0.0 / 0.0 / 1.0 / 0.3 / 0.2 / 17.1
India / L / US$ / 45.0 / 45.0 / 51.0 / 51.0 / 25.0 / 13.6 / 13.6 / 1,293.4
Netherlands / G / EUR / 9.9 / 8.8 / 16.0 / 14.4 / 6.0 / 9.5 / 9.2 / 877.5
Korea / L / WON / 51,337.0 / 39.0 / 0.0 / 0.0 / 10.0 / 15,539.6 / 12.4 / 1,183.5
L / US$ / 2.6 / 2.6 / 0.0 / 0.0 / 0.0 / 0.0 / 0.0 / 0.0
G / US$ / 1.0 / 1.0 / 0.0 / 0.0 / 1.0 / 0.5 / 0.5 / 48.4
Kuwait / L / KWD / 11.0 / 36.0 / 0.0 / 0.0 / 4.0 / 1.4 / 4.8 / 455.1
Norway / G / NOK / 221.8 / 24.5 / 27.9 / 3.8 / 6.0 / 40.6 / 5.2 / 499.3
China / L / CNY / 20.0 / 2.0 / 30.0 / 3.6 / 1.0 / 0.0 / 0.0 / 0.0
G / CNY / 108.7 / 13.2 / 25.0 / 3.0 / 2.0 / 15.0 / 1.8 / 174.1
Sweden / G / SEK / 127.3 / 11.9 / 56.2 / 5.4 / 5.0 / 27.5 / 3.0 / 282.4
Germany / L / EUR / 73.6 / 65.0 / 0.0 / 0.0 / 8.0 / 3.6 / 3.6 / 345.7
G / EUR / 29.4 / 26.0 / 8.2 / 7.4 / 7.0 / 8.0 / 7.9 / 754.8
U.K / G / GBP / 5.0 / 7.3 / 0.0 / 0.0 / 2.5 / 0.9 / 1.3 / 124.1
Saudi Fund / L / SAR / 22.4 / 6.0 / 45.0 / 12.0 / 2.0 / 0.0 / 0.0 / 0.0
U.S.A. / G / US$ / 22.0 / 22.0 / 10.0 / 10.0 / 1.5 / 0.0 / 0.0 / 0.0
Multilateral / - / 959.0 / 0.0 / 429.1 / 217.5 / 269.2 / 25,756.1
ADB / L / SDR / 472.0 / 593.0 / 118.2 / 152.9 / 120.0 / 85.4 / 112.0 / 10,683.0
L / US$ / 15.0 / 15.0 / 120.0 / 120.0 / 0.0 / 37.2 / 37.2 / 3,592.1
L / YEN / - / - / 1,176.6 / 9.7 / 0.0 / 0.0 / 0.0 / 0.0
G / US$ / 21.8 / 21.8 / 2.7 / 2.7 / 6.0 / 5.4 / 5.4 / 514.5
World Bank / L / SDR / 180.0 / 226.0 / 59.3 / 79.3 / 70.5 / 70.6 / 90.7 / 8,674.3
G / SDR / 7.0 / 8.7 / 6.4 / 8.5 / 4.5 / 2.0 / 2.5 / 242.7
G / US$ / 1.9 / 1.9 / 1.6 / 1.6 / 0.0 / 1.2 / 1.2 / 113.8
Nordic Fund / L / SDR / 15.0 / 19.0 / 0.0 / 0.0 / 1.0 / 1.1 / 1.4 / 134.5
IFAD / L / SDR / 13.6 / 17.0 / 0.0 / 0.0 / 4.0 / 3.0 / 3.8 / 362.3
OPEC / L / US$ / 13.0 / 13.0 / 9.0 / 9.0 / 1.0 / 0.0 / 0.0 / 0.0
UNICEF / G / US$ / 0.0 / 0.0 / 13.8 / 13.8 / 0.0 / 5.6 / 5.6 / 533.0
WFP / G / US$ / 16.2 / 16.2 / 31.1 / 31.1 / 0.0 / 3.0 / 3.0 / 284.0
UNDP/FAO Other UN / G / US$ / 18.3 / 18.3 / 0.5 / 0.5 / 8.0 / 4.8 / 4.9 / 467.1
European Union / G / EUR / 10.0 / 9.1 / 0.0 / 0.0 / 2.5 / 1.9 / 1.6 / 154.8
Export Credit / 115.0 / 50.8 / 28.0 / 52.8 / 5,054.5
ABN Sweden & Sida / L / SEK / 109.0 / 10.0 / 0.0 / 0.0 / 67.8 / 7.0 / 672.0
EXIM ChinaKorea / L / US$ / 99.5 / 99.5 / 0.0 / 0.0 / 22.0 / 22.0 / 2,108.9
A/S Eksportfinance / L / NOK / 14.1 / 1.5 / 0.0 / 0.0 / 14.1 / 1.8 / 168.3
ABN AMRO & SCGL / L / EUR / 4.5 / 4.0 / 0.0 / 0.0 / 3.8 / 3.6 / 339.9
ANZ Bank / L / YEN / 0.0 / 6,278.0 / 50.8 / 2,197.3 / 18.4 / 1,765.4
Commercial Bank / L / EUR / 40.0 / 41.5 / 0.0 / 0.0 / 0.0 / 0.0
European Invest. Bank / L / EUR / 40.0 / 41.5 / 0.0 / 0.0 / 0.0 / 0.0
Total Loans / - / 2,353.6 / 779.0 / 475.0 / 0.0 / 494.5 / 47,294.6
Total Grants / - / 220.9 / 111.4 / 75.0 / 0.0 / 77.2 / 7,387.9
Grand Total / - / 2,574.5 / 890.4 / 550.0 / 0.0 / 571.7 / 54,682.5
Note:-Various loan/grant curremcies are converted in to Rupee as at transaction date exchange rate and converted in to US$ at annual average rate 1$ = 95.6617
CUB - Committed undisbursed balance

1

[1] Loans from the Special Fund Resources of the Asian Development Bank are designated in SDRs but disbursed in multiple currencies. If these are compiled in the currencies of disbursement, the top five currencies may be different.