JICA provides Rs42bn loan for Kalu Ganga water supply expansion

A concessionary loan agreement for JPY 31,810 million (approx. Rs. 42,307 million) was signed on 7th of July 2017 between the Government of Sri Lanka and Japan International Cooperation Agency (JICA) for Kalu Ganga Water Supply Expansion Project (I). The loan agreement for the project was signed by Dr.
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R. H. S. Samaratunga, Secretary, Ministry of Finance and Mass Media, and Mr. Fusato Tanaka, Chief Representative of JICA Sri Lanka Office. The project is implemented by National Water Supply and Drainage Board under the direction of Ministry of City Planning and Water Supply. The objective of the project is to improve access to safe water and water supply efficiency in the southern area of Western Province by expanding the Kalu Ganga water supply facilities and restructuring water distribution networks, thereby contributing to improvement in the living conditions of the project area. Western Province is the center of Sri Lanka’s political and economic activities, as around 42 percent of GDP (Gross Domestic Products) and 28.5 percent of the population is concentrated in this area. The province has been leading economic development with industrial complexes, export processing zones, and the largest international airport in the country. Although the infrastructure is relatively advanced and the water supply coverage is 62.7 percent, higher than the national average of 45.9 percent, communities without water supply systems remain in the province outside of Colombo District. It is predicted that urbanization will further progress and that the water demand will grow, making an expansion to the water supply services necessary in the province. Moreover, deterioration of the water distribution pipes has resulted in high non-revenue water rates of 30 to 40 percent caused by leaks, illegal connections, and uninstalled meters. To address the rising demand for water, it is essential that the non-revenue water rates are reduced for a more efficient water supply. Taking these circumstances into account, the project will construct water supply systems, including an expansion of the water treatment plants by another 140,000m3/day capacity, and installation of intake facilities, transmission and storage facilities etc. The project will also launch a pilot project for reducing non-revenue water. The project will contribute to strengthening the water supply capacity in the southern areas in Western Province for a safe, stable water supply. “This project will contribute to improve water supply situation in Western Province in line with rapid urbanization”, says Mr. Tanaka, Chief Representative of JICA Sri Lanka. (Press Release)