The Government has signed two Loan Agreements with the EX1M Bank of India on 26.11.2010 and 17.01.2012 amounting to US$ 416.39 million and US$ 382.37 million respectively, for the reconstruction of the Northern line and Talaimannar line railway.
Under the former, the sections of track between Omantai/Pallai, Medawachchiya/Madhu Road and Madhu Road/Talaimannar, and under the latter the section of track between Pallai/Kankesanthurai and the Signal and Telecommunication Project are being implemented. The second Loan Agreement of US$ 382.37 million includes the estimated cost of US$ 235.85 million in respect of PallailKankesanthurai section of track and the Signal and Telecommunication Project and a balance sum of US$ 146.52 million to be utilised for additional works with the mutual consent of the two parties involved.
Out of the US$ 146.52 million, a sum of US$ 40.02 million has been set apart for the variations of cost incurred in the Northern Line and Talaimannar Line projects thus leaving a balance of US$ 106.50 million.
On completion of the reconstruction of the tracks in the Northern line and Talaimannar line trains could be operated at a maximum speed of 100 kmph between Kankesanthurai IOmantai and Talaimannar/Medawachchiya sections, but this would not be possible between Omantai / Anuradhapura, where only a maximum speed of 45 kmph is possible due to the existing track defects.
Although the reconstruction of the Northern Line tracks will provide the people of the North with the opportunity of realising their aspiration of a faster train service to commute to their destinations in a short period of time, this would not be possible due to the existing weak condition of the track between Omantai and Anuradhapura. Hence, the rehabilitation of the railway track, 62 km in length between Anuradhapura and Omantai under an Indian Line of Credit is to be commenced.
