$453 m from ADB for Mahaweli Water Security Investment Program

The Government yesterday entered into a loan agreement with the Asian Development Bank (ADB) to obtain $210 million to fund the Mahaweli Water Security Investment Program as part of a larger $675 million project.  

The Mahaweli Water Security Investment Program is one of the major ongoing investment programs currently being implemented under the loan assistance of the ADB. 

In this connection, Finance Ministry Secretary Dr. R. H. S. Samarathunga, on behalf of the Government, and ADB Country Director Sri Widowati signed the two Loan Agreements. 

The total investment cost of this program is $675 million of which $453 million will be provided by ADB under Multitranche Financing Facility (MFF). 



The Government has already signed two loan agreements with ADB to obtain $150 million to finance the first tranche of the programme. 

Three major investment projects - Upper Elahera Canal Project, North Western Province Canal Project, Minipe Left Bank Canal Rehabilitation Project - will be implemented under the above investment program. The construction of new and improved water conveyance and storage infrastructure under this program will increase the productivity of agricultural lands in the North Western, North Central and Central Provinces. 

The construction of 158 km canals, including 38 km of tunnels, is being implemented. In addition, construction of two new reservoirs with storage capacities of 36 million cubic metres are also included in the program.  Rehabilitation of the 74 km Minipe Left Bank Canal is also programed under this investment. 

About 25,000 farmer families under the Upper Elahera Canal Project, 40,000 farmer families under the North Western Province Canal Project and 15,000 farmer families under the Minipe Left Bank Canal Rehabilitation Project will directly benefit through this entire program. In addition, provision of safe drinking water for people live in those areas will help in the prevention Chronic Kidney Disease (CKD).  

The following components will be financed under the proposed tranche 2. 

(i) Partial construction of approximately 28 km of tunnel of the 62 km conveyance canal linking the Moragahakanda and Hurluwewa reservoirs; 

(ii) Partial construction of approximately 8.8 km of tunnels and conveyance canal linking the Kalu Ganga and Moragahakanda reservoirs 

(iii) Continuing construction of the Mahakithula and Mahakirula Reservoirs, and Mahakithula Inlet Tunnel which has been initiated under tranche 1 of this program. 

The total investment cost of tranche 2 is $242 million. The Government will contribute $32 million and ADB will provide $210 million as two loans. This project will be implemented by the Ministry of Mahaweli Development and Environment. 

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