US$ 42m Kuwait grant for Moragahakanda-Kalu Ganga Project

Uditha Kumarasinghe and Irangika Range

Agriculture Development and Agrarian Services Minister Maithripala Sirisena told Parliament yesterday that the Kuwait Government has granted US$42 million to construct the Moragahakanda-Kalu Ganga Project.

The Minister said OPEC has pledged to grant US$ 21 million while the Saudi Government has also agreed to give US$ 56 million to this project. “In addition, discussions are under way to obtain funds from JAICA for this mega irrigation scheme,” he said.

US$ 21 million pledged by OPEC will be utilised to construct the main canal linking Moragahakanda and Kalu Ganga reservoirs.

Local funds will also be utilised for the project.

The Minister said the Moragahakanda-Kalu Ganga Project was ceremonially launched under President Mahinda Rajapaksa’s patronage on January 25, 2007. Then the estimated cost of this entire project was US$ 450 million.

However, this estimated cost has gone up to US$570 million due to increase in the expenditure cost of the project. This mega irrigation scheme commenced with local funds in 2007. The national budget granted Rs. 463 million in 2007 and Rs. 645 million in 2008 for the construction work of this project.

However, various foreign donors and Internal Financial Institutions have pledged to provide financial assistance due to the progress of this project, Minister Sirisena said. The Minister was responding to an oral question raised by JVP MP R.P.A. Ranaweera Pathirana.