ADB loan for Govt. to channel Mahaweli water to the North
View(s):The Government with ADB assistance is planning to channel Mahawali water to the northern parts including the North Western, North Central and Northern Provinces which would help farmers in those regions.
This initiative comes under the Mahaweli Water Security Investment Programme with the aim of maximizing the productivity of Mahaweli River Basin water resources. The total investment cost of this programme is around Rs 90 billion (US$675 million) and the Government of Sri Lanka has entered into two loan agreements to obtain financial assistance for tranche1 of this programme, according to Finance Ministry media release.
The ADB has agreed to provide $453 million under the Multi – tranche Financing Facility (MFF) of ADB through three tranches for the implementation of this programme. The Government contribution for the total programme is $108 million and the balance $114 million will be arranged through co-financing.
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 programme. The construction of new and improved water conveyance and storage infrastructure under this programme will increase the productivity of agricultural lands in the above provinces.
A total of 80,000 farmer families will be directly benefited through this scheme. In addition, provision of safe drinking water for people live in those areas will help to prevent Chronic Kidney Disease. (CKD), the ministry said.
In this connection, Dr. R H S Samarathunga, Secretary to the Ministry of Finance and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission on behalf of ADB, representing the two institutions on Thursday signed two loan agreements for $150 million.