Cabinet DECISIONS

*Rehabilitation of Pillaiyar (Ganadeviyo) Kovil at 'Thunnukai in Mullathivu district by the Central Engineering Consultancy Bureau

Several construction activities have been undertaken by the Central Engineering Consultancy Bureau, which is a government concern, in the Northern Province. Work costing over Rs. 500 million has already been completed. Cabinet approved the proposal made by Irrigation and Water Resources Management, Minister Nimal Siripala de Silva to assist in the rehabilitation of the Kovil by contributing Rs 5 million from profits earned in the region by the Central Engineering Consultancy Bureau.

* Implementation of Broadlands Hydropower Project

Broadlands site has been identified as a potential hydro-power site by the Ceylon Electricity Board. The government intends to implement this project immediately to reduce the cost of electricity generation by adding new hydro-power to the network. Eighty five percent of the total cost of the project of US$ 82 million is to be financed by China and the balance l5 percent by the Sri Lankan government. Cabinet approved a proposal made by Minister Patali Champika Ranawaka to proceed with the project.

* Construction of railway line from Pallai to Kankesanthurai with assistance of EXIM Bank of India

Construction of the railway line from Omanthai to Pallai bas been awarded to M/s. Indian Railway Construction International Ltd. (lRCON) which is a fully government owned company of India. On a proposal made by the President, Cabinet granted approval to handover the construction of the balance part of the railway line from Pallai to Kakesanthurai to the same Indian company at a cost of US$ 149.3 million.

* UDA development activities in Colombo and adjoining areas. Housing development programme for under- served settlements. Award of 1137 Housing Units to Access Engineering Limited at Henamulla Village, Ward No. 3 at Mahawatta in CMC area

The government has launched a development programme on housing for under-served settlements in and around Colombo. Cabinet granted approval for the proposal made by the President, on the recommendation of the Cabinet Appointed Negotiating Committee and the Project Committee, to award the construction of 1,137 Housing Units in a land owned by the Urban Development Authority at Henamulla Village, Mahawatta in the Colombo Municipal Council area at a total cost of Rs.2899 million.

* Project for reconstruction of five Bridges in Eastern Province.

The Japanese government through Japan International Cooperation Agency (JICA) has extended a grant towards the cost of the above project. The objective of this project is to stabilize and enhance socio-economic activity and to expedite progress and peace in the region through improving accessibility through the Eastern Province.

Cabinet approved the proposal made by the President for the construction of four bridges on Peradeniya - Badulla Chenkaladi road (AOO5) and one bridge on Batticaloa - Tirikkondiadimadu - Trincomalee road (A015). The total amount of the grant is Rs. 1,400 million and the contribution of domestic fund is Rs. 530 million.

* Hatton-Nuwara Eliya Road Improvement Project funded by the Economic Development Cooperation Fund of Korea

The government has received a loan of US$ 40 million from the Economic Development Co-operation Fund of Korea towards the cost of improvements to Hatton-Nuwara Eliya section (46.75 km) of the Avissawella-Hatton-Nuwara Eliya road (A 7). The Cabinet approved the proposal made by the President, on the recommendation of the Cabinet Appointed Procurement Committee and the Technical Evaluation Committee to award the contract for Rs 1,767 million.

* Implementation of Badulla, Haliela and Ella Integrated Water Supply Project

This water supply project is intended to provide pipe borne water facilities to an additional population of 54,000 living in the area, while improving the level of service of the existing water supply to about 57,000 consumers. Cabinet granted approval to award the contract for a total of US$ 74.16 million and for the General Treasury to provide Rs. 2,238.88 million as local costs, as per the proposal made by Water Supply and Drainage Minister Dinesh Gunawardana on the recommendation of the Cabinet Appointed Negotiating Committee.

* Registrar General's Department - Establishment of two Land Registries for the jurisdictions of Attanagalla and Embilipitiya

Due to the increase in registration activities in the Gampaha and Ratnapura districts, Cabinet approved to establish two new Land Registries at Attanagalla in the Gampaha District and at Embilipitiya in the Ratnapura District, to provide better facilities to the people living in the areas in accordance with a proposal made by Public Administration and Home Affairs Minister W D J Seneviratne.

* Credit facilities to finance implementation or water supply projects for Kolonna and Balangoda

Kolonna water supply project is to provide safe drinking water to the population living in Kolonna Town area and its suburbs, including Embilipitiya town area and its suburbs. This will be implemented in two stages to provide water to a population of 20,000 in each stage. Eraporuwa River has been identified to provide water to this project. This will provide water to a population of 29,500. Walawe Ganga has been identified to supply water to this project. Negotiations have been completed with Fortis Bank NY of Belgium which has agreed to provide a loan of Euro 0.47 million for this project while People's Bank has agreed to provide the balance amount of Euro 10.85 million for same. The Cabinet approved the proposal made by the President to enter into loan agreements.

* Loan of US$ 48 million from International Development Association of World Bank for second and third additional financing for livelihood development of the community in conflict affected areas

The proposal made by the President to enhance the financial assistance provided by the IDA of the World Bank from US$ 38 million to US$ 48 million for the ongoing community livelihood development project, was approved by the Cabinet.