Sri Lanka receives additional $16 m loan from SFD for Kalu Ganga Development Project

Thursday, 19 July 2018 00:00 -     - {{hitsCtrl.values.hits}}

Sri Lanka has received an additional $ 16 million loan from Saudi Fund for Development (SFD) to finance the remaining work of the Kalu Ganga Development Project.

The loan agreement was signed yesterday at the Ministry of Finance and Mass Media by Finance and Mass Media Ministry Secretary Dr. R. H. S. Samaratunga on behalf of the Government of Sri Lanka, and SFD Vice Chairman & Managing Director Eng. Yousef Ibrahim Al Abdulrahman Al Bassam on behalf of the Saudi Fund for Development.

The Kalu Ganga Development Project is currently being implemented by the Ministry of Mahaweli Development and Environment with the financial assistance of Saudi Fund for Development (SFD), Kuwait Fund for Arab Economic Development (KFAED) and OPEC Fund for International Development (OFID).

The Kalu Ganga Reservoir has a capacity of 265 million cubic meters (MCM) of water and will divert 100 MCM annually to Moragahakanda Reservoir. Under this project, it is expected to develop new irrigable lands of nearly 3,000 hectares in the Kalu Ganga Basin.

Unforeseen geological conditions in the foundations and necessary design revisions have led to price increases, and it is noted that the funds available from the above donors is not sufficient to complete the balance work of the project.

SFD has agreed to provide an additional loan of SAR 60 million ($ 16 million, Rs. 2.56 billion) to finance a part of the shortfall. The Government of Sri Lanka has already entered into agreements with KFAED and OFID to finance a part of the balance of the shortfall.