The total investment cost of this programme is USD 675 million, of which USD 453 million will be provided by the ADB under the Multi - tranche Financing Facility (MFF). The Government of Sri Lanka has already signed two loan agreements with the ADB to obtain USD 150 million to finance the first tranche of the programme.
Three major investment projects, namely, the Upper Elahera Canal Project, the North Western Province Canal Project and the Minipe Left Bank Canal Rehabilitation Project will be implemented under the above investment programme. Construction of the new and improved water conveyance and storage infrastructure under this programme, will increase the productivity of agricultural lands in the North Western, North Central and Central Provinces. Constructions of 158 Km canals including 38 km of tunnels are being implemented.
In addition, construction of two new reservoirs with a storage capacity of 36 MCM (Million Cubic Meters) are also included in the programme. Rehabilitation of 74 km Minipe Left Bank Canal is also programmed under this investment.
25,000 farmer families under the Upper Elahera Canal Project, 40,000 farmer families under the North Western Province Canal Project and 15,000 farmer families under the Minipe Left Bank Canal Rehabilitation Project will be directly benefited through this whole programme.
In addition, provision of safe drinking water for people living in those areas will help to prevent Chronic Kidney Diseases (CKD).
The following components will be financed under the proposed tranche 2. (i) partial construction of approximately 28 km of tunnel of the 62 km conveyance canal, linking the Moragahakanda and Huruluwewa reservoirs; (ii) partial construction of approximately 8.8 km of tunnels and conveyance canal linking Kalu Ganga and Moragahakanda reservoirs, (iii) Continuing construction of the Mahakithula and Mahakirula Reservoirs and Mahakithula Inlet Tunnel, which had been initiated under Tranche 1 of this programme.
The total investment cost of tranche 2 is USD 242 million. The Government will contribute USD 32 million and the ADB will provide USD 210 million as two loans. This project will be implemented by the Ministry of Mahaweli Development and Environment.