December 11, 2019
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    AFD provides a Loan of USD 70 million for Ambatale Water Supply System Improvement

    September 29, 2014

    A loan agreement was signed by the Government of Sri Lanka with the French Development Agency (AFD) today to obtain a loan of US$ 70 million (approximately Rs. 9,000 million) to finance the implementation of Ambatale Water Supply System Improvement and Energy Saving Project.

    In order to support the government ambition to transform the Colombo city to a world-class city, the government has been implementing Greater Colombo Water and Wastewater Management Improvement Investment Program that would assure the uninterrupted water supply and sanitation services to city dwellers. A series of projects have been scheduled under this program. Besides Asian Development Bank’s (ADB) commitment to finance several components of the above program, AFD has agreed to finance Ambatale Water Supply System Improvement and Energy Saving Project. Major works of the project includes upgrading of Ambatale treatment plant, installation of new water transmission pipe lines of 14.2 km and construction of a ground reservoir. The total cost of the project is estimated at US$ 100 million. Of the amount, AFD provides US$ 70 mn. The remaining amount of US$ 30 million will be borne by the Government of Sri Lanka.

    This project will increase the treatment efficiency and reduce water and energy losses during water treatment and transmission. The water loss reduction, due to the equipment upgrade, will allow using saved water in new areas. The energy saving will be converted in substantial cost saving on a strategic item as energy costs make 20% of the NWSDB expenses. A large number of people will benefit from the project and gain access to better quality water. Decreasing power requirement will also help reduce operating costs, thus improving Water Board revenues and decreasing emissions of greenhouse gases.

    The Project will be implemented by the National Water Supply and Drainage Board under the supervision of the Ministry of Water Supply and Drainage.

    The signing of the agreement pertaining to the above loan took place today at the Ministry of Finance and Planning. Ms Aude Flogny- Catrisse, Regional Director for South East Asia, signed the agreement on behalf of the AFD while Dr P.B. Jayasundera, Secretary, Ministry of Finance and Planning signed on behalf of the Government of Sri Lanka. H.E. Jean Paul Monchau, French Ambassador in Sri Lanka also participated at this occasion. (HC)

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