The program is focused on reduction of non-revenue water and improvement of water and wastewater service efficiency in Greater Colombo area. Out of the total investment of $ 400 million $ 300 million is mobilized from the Asian Development bankas loans while $ 100 million is invested by the Government. The loan agreements of the first two tranches of the program were signed between the Government and ADB in 2013 and 2014 respectively.
The overall program aims to reduce non-revenue water in Greater Colombo area from its current level of around 49% to 20%. Most of the pipe borne water supply systems in Greater Colombo area is about 60-70 years old. Paying of lesser attention for the renovation of existing old distribution systems has caused to increase the non-revenue water level to around 49%. The Government incurs a loss of around Rs. 1200 million per annum due to this higher level of non – revenue water. It has affected the Government’s effort for providing safe drinking water to all. Accordingly, the above program has focused on reduction of non – revenue water while improving the water supply and wastewater management services in Greater Colombo area.
The total investment cost of the third and final tranche of the program is $ 168.46 million. The contribution of the Government is $ 40.46. The balance $ 128 million is mobilized from ADB. Tranche 3 is focused on implementing following sewer system rehabilitation activities of the program,
Establishing new sewer network for un-served Kirulapona area in the south catchment area of Colombo and construction of three pump stations, construction of 50,000 cubic meters per day capacity secondary treatment plant at Wellawatta on a Design-Build-Operate basis.
The Ministry of Finance will be the borrower for these two loans and the project will be implemented by the Colombo Municipal Council under the supervision of the Ministry of Provincial Council and Local Government and National Water Supply and Drainage Board under the supervision of the Ministry of City Planning and Water Supply and Drainage. The Tranche 3 is scheduled to be completed by June 2020
The relevant loan agreements were signed between Dr. R. H. S Samarathunga, Secretary to the Treasury on behalf of the Government and Ms. S. Widowati, Country Director of the Asian Development Bank Residence Mission on behalf of the Asian Development Bank at the Ministry of Finance on August 11.
