Long delayed Malwathu Oya project gets underway with Chinese EXIM Bank funding
The long-delayed Malwathu Oya Reservoir Project marred with irregularities will begin soon after securing funding from Chinese EXIM Bank clearing all the dealings made by the previous regime to implement it since 20O9, Irrigation Ministry sources disclosed. Malwathu Oya is located in close proximity to Thantirimale area on the Anuradhapura- Manner district boundary. The feasibility study of the project has been completed in 2012 to fulfill the irrigation and drinking water requirements in the Mannar district by building the Malwathu Oya Reservoir with water capacity of 158,000 acre feet, covering around 5000 acres of forest land along the downstream of Malwathu Oya.
Although the then government had allocated Rs. 1 billion to meet the initial cost, no headway was made during the past three years. This project proposal was included in the 2015 Mahinda Rajapaksa Budget again under a massive irrigation system development initiative to develop at least 16 reservoir schemes at a cost of Rs.15 billion. The project was to be implemented under the Economic Development Ministry at that time.
There are no Treasury records relating to the spending of Rs. 1 billion of initial costs during the previous regime, a senior Treasury official who wished to remain anonymous told the Business Times.
Environmental studies have been conducted by the Mahaweli Consultancy Bureau (MCB) and its interim report is at present under review of the Irrigation Ministry, he added. The total project cost is around Rs.12 billion (US$ 80 million), according to latest estimates forwarded by the Irrigation Ministry to the Cabinet Committee on Economic Management (CCEM). Earlier an agreement to implement the project had been signed between the Irrigation Ministry and China CAMC Engineering Company Ltd (CAMCE). Subsequently approval of the Cabinet was obtained in 2009 to implement this project with CAMCE as an engineering, procurement and construction (EPC) contractor.
The latest development is that the Ministries of Agriculture and Irrigation have jointly submitted a Cabinet Memorandum on 05-05-2016 and approval has been granted in principle to implement the project on 07-06-2016. The Cabinet has directed the Ministry of National Policies and Economic Affairs to seek suitable foreign financing and the Treasury has informed that Chinese Exim Bank funding will be available for this project.