Press briefing of Cabinet Decision taken on 2011-12-21

Iranamadu Irrigation Development Project - Kilinochchi District

- on the initiative of H.E. the President in his capacity as the Minister of Finance and Planning, Loan Negotiations have been concluded with the International Fund for Agricultural Development (IFAD) to obtain a loan of Special Drawing Rights (SDR) 14,350,000 (approximately US$ 22,231,000) to finance the above project. The project will cover 8455 hectares and will benefit the farmers living around the tank area. The project includes the following:

* Infrastructure Development - it is proposed to rehabilitate down-stream canal system of this tank which provides irrigation water to 8455 hectares. This includes rehabilitation of 30km of 2 main canals, 135km of branch and distribution canals, 123km of field canals and 95km of drainage canals. Farm roads will also be improved. The project will support around 2000 families experiencing water shortages.
* Production and Marketing - the project will support and strengthen water management activities for women groups and youth to engage in non-paddy crop cultivation and off-farm income generation activities, agricultural processing and organic fertilizer production.

The loan will have a 40 year re-payment period including a grace period of 10 years. The proposal made by H.E. the President to enter into a loan agreement with the IFAD for the purpose, was approved by the Cabinet.