Loan agreements signed with World Bank for development projects in Kandy

The loan agreements for two projects financed by the World Bank (WB) for Kandy Multimodal Transport Terminal Development Project (KMTTDP) and Integrated Watershed and Water Resources Management Project (IWWRMP) were signed today between the government and senior World Bank officials in Colombo.

Secretary to the Treasury S.R. Attygalle, on behalf of the government and  Country Director for Maldives, Nepal and Sri Lanka of WB  Faris H. Hadad-Zervos signed on behalf of the WB, according to a statement from the Department of External Resources of Treasury.

Kandy Multimodal Transport Terminal Development Project (KMTTDP)The National Policy Framework of the government has highlighted the integrated physical spatial system to address the disparities between provinces and districts in the same provinces and changes in the structural pattern of the cities.

In view of historical social and economic value, a number of cities including Kandy city have been identified as cities that will be developed as national cities in the master plan.

The proposed KMTTD project is to construct a functional transport terminal with state of art facility including bus parking facilities, access roads and drainage systems at a total estimated cost of USD 69.33 million.

The project will provide a robust solution against the haphazard dispersion of transport terminals and the severe traffic congestion in Kandy city while providing better facilities for passengers to transfer among different transport modes.

 KMTTD project is the time requirement to make public transport more systematic and thereby making Kandy city as a most attractive tourist destination. The WB has agreed to finance this project through a loan facility of SDR 47, 137,315 (equivalent to USD 64.33 million)
from concessional credit facility and USD 5 million from Non-concessional credit facility.

This project will be implemented by the Urban Development Authority (UDA) under the supervision of the Ministry of Urban Development and Housing.

Integrated Watershed and Water Resources Management Project (IWWRMP)Government Policy Framework has given priority to agriculture sector development through advanced technology innovations while promoting export of value-added agro-based products.

Therefore, the government has focused on the sustainable approach to address all the key interconnected water resource management issues such as conservation, rehabilitating and protecting of the watershed, ensuring the enhanced operational efficiency of the reservoirs and defined water prioritization among sectors.

The proposed project is to improve watershed and water resources planning and enhance the functionality of water resources infrastructure by the means of improved safety of dams and improved water distribution networks for irrigation.

Under this proposed project USD 13.67 million will be allocated to watershed and water resources planning to help plan and restore the Upper Mahaweli Watershed. Another USD 57.8 million will be allocated under this project for the rehabilitation of 36 dams and 19 irrigation channel systems to enhance the efficiency, safety, and durability of hydraulic assets.

The WB has agreed to finance this project through a loan facility of USD 44.50million from a concessional credit facility and USD 26.7million from a non-concessional credit facility. This project will be implemented by the Ministry of Irrigation.