ADB grant for water project

The Asian Development Bank (ADB) and the Sri Lankan government signed the first-tranche of US $ 84 million under the multi-tranche credit line to implement the non-revenue water management programme in the Greater Colombo area.

The total investment cost of this programme is US $ 400 million of which US $ 300 million is to be provided by the ADB to supplement the government investment of US $ 100 million to improve water supply and water management systems in the Municipality areas of Colombo, Kolonnawa, Dehiwala-Mount Lavinia and Sri Jayawardenapura Kotte.

The programme is designed to reduce non-revenue water in the municipality areas in Colombo from its current level of around 49 percent to 20 percent by 2016.

Most parts of the pipe borne water supply system in the Greater Colombo Area are about 60 to 70 years. Paying lesser attention to renovate the aging distribution system has resulted in an increase of the non-revenue water level significantly, with a loss of around Rs 3 billion per annum.

The proposed improvements to the water supply and water management systems will improve access to safe drinking water, ensure an uninterrupted supply of water and also result in energy savings.

The Water Supply and Drainage Ministry, the National Water Supply and Drainage Board, the Local Government and Provincial Councils Ministry and the Colombo Municipal Council will jointly spearhead the implementation.

Further, a budget support of US $ 200 million for education sector development was approved in support of Sri Lanka’s human capital development to address emerging middle income economy needs and the government’s knowledge centric policy strategies.

The programme aims at improving student learning, equity in access to quality education and efficiency of the education system by supporting the mahindodaya school development initiative for primary and secondary schools islandwide. The first tranch of US $ 40 million is to be released before end 2013.

ADB President Takehiko Nakao and Treasury Secretary Dr. P. B Jayasundera signed the two loan agreements at the Asian Development Bank headquarters in Manila, Philippines on Friday.

Dr. Jayasundera also held bilateral discussions with Nakao, ADB Vice President Xiaoyo Zhao, ADB (South Asia Department) Director General Juan Mirinda on future programmes in education, urban townships development, highways, road network connectivity, energy and proposed programmes towards a poverty free Sri Lanka by 2016 as announced by President Mahinda Rajapaksa in his 2013 Budget Speech delivered in November 2012.