ADB supports first performance-based non-revenue water PPP project in Galle

Tuesday, 3 June 2025 03:18 - - {{hitsCtrl.values.hits}}

From left: ADB Country Director Takafumi Kadono, Urban Development, Construction and Housing Ministry Secretary Ranjith Ariyaratne, and National Water Supply and Drainage Board Chairman Deepthi U. Sumanasekara signed the Transaction Advisory Service Agreement on 30 May for the development of the Galle NRW PPP project

Groundbreaking initiative to boost water efficiency and sustainability

The Asian Development Bank (ADB) is supporting the Government of Sri Lanka in developing the country’s first performance-based public-private partnership (PPP) to reduce non-revenue water (NRW) in Galle, a key coastal city in the South.

The project will help modernise the city’s water distribution system, reduce water losses, and enhance financial sustainability in the sector.

The proposed PPP, led by the National Water Supply and Drainage Board and the Urban Development, Construction, and Housing Ministry, will target a significant reduction of NRW in Galle by reducing physical water losses and increasing billable water. This would translate to a significant improvement in service delivery, revenue generation, and resource conservation.

Under the project, the private partner will finance, implement, and maintain infrastructure improvements such as pipe replacements, pressure-reducing valves, and metering upgrades. Payments will be based on measurable reductions in water loss—an innovative model that incentivises performance and long-term sustainability.

ADB Country Director for Sri Lanka Takafumi Kadono said: “High levels of NRW remain a serious challenge to water utilities across Asia and the Pacific. This project represents a pioneering step for Sri Lanka in using PPPs to strengthen the efficiency, resilience, and sustainability of its water sector. The ADB is proud to bring international expertise to support the Government through project preparation, competitive tendering, and financial close.”

The project is aligned with the Government’s broader reform agenda to improve water sector performance and achieve universal access to safe water. Lessons learnt will help inform the scale-up of similar PPP models across the country.

The ADB will provide transaction advisory services through technical assistance for preparing and tendering the project and signing the PPP agreement with the selected private partner. The project will also complement ongoing ADB sovereign operations to improve water services in Sri Lanka, and is part of a broader program to strengthen public service delivery, governance, and environmental sustainability.

The ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, the ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, the ADB is owned by 69 members—50 from the region.

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