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ADB funds Rs. 10 b to boost water supply, sanitation in north

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The Asian Development Bank (ADB) has agreed to provide financial assistance amounting to Rs. 10 billion (US$ 90 million) for the implementation of the Jaffna and Kilinochchi Water  Supply and Sanitation project in line with the Government’s target of providing safe drinking water for all citizens.

The main objectives of the project are to improve water supply services in Jaffna and Kilinochchi Districts, provide sanitation infrastructure for residents living in the Jaffna Municipal Council area and strengthen the water resources management programme in Jaffna Peninsula.

It is expected to supply 60,000 (300,000 persons) new water connections in Jaffna and Kilinochchi Districts and connect 20,000 households (80,000 persons) in the Jaffna Municipal Council area to the sewer network.

The project is scheduled to be completed by 14 February 2017. The total investment cost of the project is Rs. 17,880 m (US$ 164.04 million) of which the contribution of the Asian Development Bank (ADB) includes a loan of Rs. 7, 630 m (SDR; Special Drawing Rights 44,286,000 — approximately US$ 70 million) from the Asian Development Fund (ADF) and a loan of Rs. 2,180 million (US$ 20 million) from Ordinary Capital Resources (OCR).

The Agence Francaise de Development (AFD) of France has agreed to provide a loan of Rs. 5,232 million (Euro 35 mllion or US$ 48 million) to part finance the water supply subcomponent of the project and associated consulting services for design and supervision.

In addition, the International Fund for Agricultural Development (IFAD) has agreed to provide a loan of Rs. 2,180 million (US$ 20 million) for the downstream development of the Iranamadu Tank from which water is drawn for the water supply scheme in order to ensure that adequate quantity of water is provided to the farmers in the downstream for irrigation. Two separate financing agreements will be signed with the AFD and IFAD for this purpose. The Government contribution to the project will be Rs. 2,838 million (US$ 26.04 million).

The proceeds of the ADB and AFD loans will be used for the following activities:

1. Rehabilitation and improvement of head works at the lranamadu Tank, construction of a new water intake, water treatment plant and laying the water transmission mains in order to provide new distribution systems for the Jaffna Municipality, Chavakachcheri Urban Council and selected Pradeshiya Sabhas of Jaffna and Kilinochchi and also providing water connections to households in poor areas.

2. Provision of a sewerage collection system and equipment for the Jaffna Municipal Council area including a sewerage treatment plant and treated effluent outfall by aiming to introduce low cost sanitation programmes for selected communities.

3. Developing groundwater monitoring system in the project area while providing support to municipalities, urban councils and pradeshiya sabhas in the preparation of their by-laws. It is also expected to construct a new regional office of NWSDB in Jaffna.

The National Water Supply & Drainage Board (NWSDB) under the supervision of the Ministry of Water Supply and Drainage and the Northern Provincial Council (NPC) through Provincial Irrigation Department under the supervision of the Ministry of Local Government and Provincial Councils will implement the project.

The Secretary to the Ministry of Finance and Planning on behalf of the Government of Sri Lanka and Country Director – ADB on behalf of the Asian Development Bank have signed the Loan Agreement. Further, two project agreements have been signed between ADB and NWSDB and ADB and NPC for the implementation of the project.

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