Press briefing of Cabinet Decision taken on 2011-07-13

Credit Facilities to finance the implementation of Water Supply Projects for Kolonna and Balangoda

- Kolonna Water Supply Project is to provide safe drinking water to the population living in Kolonna Town area and its suburbs, including Embilipitiya town area and its suburbs. This will be implemented in two stages to provide water to a population of 20,000 in each stage. Eraporuwa River has been identified to provide water to this project. Balangoda Water Supply Project is an integrated scheme which covers the Balangoda town and its suburbs including the area of Samanalawewa project. This will provide water to a population of 29,500. Walawe Ganga has been identified to supply water to this project. Negotiations have been completed with Fortis Bank NV of Belgium which has agreed to provide a loan of Euro 10.47 million for this project. The People's Bank has agreed to provide the balance amount of Euro 10.85 million for this project. The proposal made by H.E. the President to enter into Loan Agreements for the purpose, was approved by the Cabinet.