Press briefing of Cabinet Decision taken on 2017-11-14

Obtaining Loan Assistance for the Implementation of Tranche 2 of the Mahaweli Water Security Investment Programme

- The Mahaweli Water Security Investment Programme is implemented with the objective of providing Mahaweli River Water for agricultural activities, drinking water requirement and commercial purposes in the North Western, North Central and Northern Provinces and thereby, improving the productive utilization of the said water. Under Tranche 2 of the programme, it is expected to construct the Conveyance Canal of the Upper Elahera canal of 62 km in length connecting the Moragahakanda and Huruluwewa reservoirs, to construct the canal with tunnels linking the Kalu Ganga and Moragahakanda reservoirs and to carry out the rest of the construction activities of the Mahakirula reservoirs and the inlet tunnel of Mahakithula.

The total investment for the Tranche 2 is US$ 242 million and a contribution of US$ 32 million out of same will be borne by the Government of Sri Lanka. The remainder financial requirement of US$ 210 million is due to be recovered as a Loan from the Asian Development Bank (ADB). As such, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister in his capacity as the Minister of National Policies and Economic Affairs, to conduct negotiations with the ADB to obtain the said loan and to enter into the relevant Loan Agreements with the bank, was approved by the Cabinet.