EDCF has been successively supporting in water supply and sanitation sector since 2000 with the greater Galle and Ruhunupura water supply projects.
While Sri Lankans who are able to have access to safe drinking water reached above 80% in the island, people from Kurunegala and Kegalle districts are still suffering from poor water and sanitation systems. In fact, Kurunegala District has the least piped water coverage, only about 8.3%, which is far below the national average coverage at 43.5%. Unsafe drinking water is assumed to be one of the main causes of chronic kidney diseases prevailing in the area. In Kegalle, the main sources of drinking water are dug wells, and hence people happen to suffer from water shortage during the dry period. The existing water supply systems meet only about 22% of drinking water demand in Ruwanwella.
Given the circumstances, Deduru Oya and Ruwanwella water supply projects have been assigned high priority by the Sri Lankan Government. The two projects aim to provide safe drinking water to residents in the project areas through a piped water supply system, thereby decreasing the incidence of water borne diseases, improving the living conditions, and promoting economic prosperity. EDCF will support the construction of water-intake facilities, purification plants, storage reservoirs, transmission lines and distribution networks.
EDCF was established by the Korean government in 1987 to promote economic exchanges and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Exim bank currently manages the fund as its trustee. As of the end of 2013, EDCF has supported 311 projects in 52 countries with USD 9.4 billion.
To date, Korea Exim bank has provided Sri Lanka with an aggregate amount of USD 605 million in loans on a commitment basis for 27 projects through the EDCF, starting with the Colombo-Galle Road Rehabilitation Project in 1990. Priority areas of Korea-Sri Lanka partnership strategy include roads, water supply, education, vocational training, environment, renewable energy and good governance. Since the establishment of EDCF resident mission in Sri Lanka in 2013, Korea Eximbank expects to build a stronger foundation in Sri Lanka to develop a range of infrastructure projects particularly on mixed credit basis by combining its Export Credit facilities and EDCF support.
