USD 453 Million from ADB for Mahaweli Water Security Investment Program

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The Mahaweli Water Security Investment Program is one of the major ongoing investment programmes currently being implemented under the loan assistance of the Asian Development Bank (ADB). The total investment cost of this program is USD 675 million of which USD 453 million will be provided by ADB under Multi – tranche Financing Facility (MFF). The Government of Sri Lanka has already signed two loan agreements with ADB to obtain USD 150 million to finance the first tranche of the programme.

Three major investment projects; Upper Elahera Canal Project, North Western Province Canal Project, Minipe Left Bank Canal Rehabilitation Project will be implemented under the above investment program. The construction of new and improved water conveyance and storage infrastructure under this program will increase the productivity of agricultural lands in the North Western, North Central and Central Provinces. Constructions of 158 Km canals including 38 km of tunnels are being implemented. In addition construction of two new reservoirs with storage capacity of 36 MCM (Million Cubic Meters) are also included in the program. Rehabilitation of 74 km Minipe Left Bank Canal is also programmed under this investment.

25,000 farmer families under Upper Elahera Canal Project, 40,000 farmer families under North Western Province Canal Project and 15,000 farmer families under Minipe Left Bank Canal Rehabilitation Project will be directly benefited through this whole program. In addition, provision of safe drinking water for people live in those areas will help to prevent Chronic Kidney Disease. (CKD)

The following components will be financed under the proposed tranche 2. (i) partial construction of approximately 28 km of tunnel of the 62 km conveyance canal linking the Moragahakanda and Hurluwewa reservoirs; (ii) partial construction of approximately 8.8 km of tunnels and conveyance canal linking the Kalu Ganga and Moragahakanda reservoirs (iii) Continuing construction of the Mahakithula and Mahakirula Reservoirs, and Mahakithula Inlet Tunnel which has been initiated under Tranche 1 of this program.

The total investment cost of tranche 2 is USD 242 million. The Government will contribute USD 32 million and ADB will provide USD 210 million as two loans. This project will be implemented by the Ministry of Mahaweli Development and Environment.

In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance and Mass Media on behalf of the Government of Sri Lanka and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, signed the two Loan Agreements to obtain USD 210 million on 18th May 2018 at the Ministry of Finance and Mass Media.