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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2038

Additional loan of USD 18 million form OPEC Fund for International Development for the Kaluganga Development Project

Washington DC, 16 October, (Asiantribune.com):

The Kaluganga Development Project is currently being implemented by the Ministry of Mahaweli Development and Environment with the financial assistance of Saudi Fund for Development (SFD), Kuwait Fund for Arab Economic Development (KFAED) and OPEC Fund for International Development (OFID).

Kaluganga Reservoir has a capacity of 265 million cubic meters (MCM) of water and will divert 100 MCM annually to Moragahakanda Reservoir. Under this project, it is expected to develop new irrigable lands of nearly 3,000 ha in the Kaluganga Basin.

Unforeseen geological conditions in the foundations and necessary design revisions have led to price increase and it is noted that the funds available from the above donors is not sufficient to complete the balance work of the project.

OFID has agreed to provide an additional loan of USD 18 million to finance a part of the shortfall. The Government of Sri Lanka has already entered into an agreement with KFAED to finance a part of the balance of the shortfall. The balance part of the shortfall is to be obtained from SFD.

Accordingly, the Loan Agreement has been signed today, 13th October 2017 at the office of OFID in Washington DC by Dr. R.H.S. Samaratunge, Secretary to the Ministry of Finance and Mass Media on behalf of the Government of Democratic Socialist Republic of Sri Lanka and Mr. Suleiman J. Al-Herbish Director General of OFID on behalf of the OPEC Fund for International Development. Hon. Minister of Finance and Mass Media, Mr. Mangala Samaraweera was also present at this occasion.

- Asian Tribune -

Additional loan of USD 18 million form OPEC Fund for International Development for the Kaluganga Development Project
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