Saudi Fund provides US$ 46 m for Kalu Ganga Development Project

Thursday, 14 October 2010 00:07 -     - {{hitsCtrl.values.hits}}

The Saudi Fund for Development has agreed to provide a loan equivalent of US$ 46 million (approximately Rs. 5,200 mn) for the Kalu Ganga Development project.

The loan is provided on highly concessional terms at an interest rate of 2% per annum repayable in 20 years including a grace period of five years. The Kalu Ganga Development project is a part of the Mahaweli Development program and is interlinked with the implementation of Moragahakanda Development project.

The main objectives of the project are to increase the availability of irrigation and drinking water, expand the existing irrigable areas in Kalu Ganga basin and thereby increase food production and improve the standard of living of people in Matale, Anuradhapura, Pollonaruwa and Trincomalee districts.

The project includes three phases. The total estimated cost of Phase I of the project is US$ 167 million and the estimated cost of the Kalu Ganga dam which is the main construction component of the Phase I of the project erected at Pallegama with height of 67 meters and length of 546 meters and two saddle dams is US$ 102.2 million.

Of the funding requirement of this component, US$ 46 million is provided by the Saudi Fund for Development. The balance foreign funding requirement of the dam construction is provided by the Kuwait Fund for Arab Economic Development and the OPEC Fund.

The Loan Agreement for the Kalu Ganga Development project was signed today at the Ministry of Finance and Planning by Dr. P.B Jayasundera, Secretary, Ministry of Finance & Planning on behalf of the Government of Sri Lanka and Eng. Yousef I. Al-Bassam, Vice Chairman and Managing Director of the Saudi Fund for Development on behalf of the Government of Kingdom of Saudi Arabia.

Abdul Aziz Abdul Rahman Al Jammaz, the Ambassador for Kingdom of Saudi Arabia in Sri Lanka, participated in the signing ceremony.