The loan agreements for two projects financed by the World Bank (WB) were signed between the Government of Sri Lanka and WB on 22 April 2021 in Colombo, Sri Lanka. Mr. S.R. Attygalle, on behalf of the Government of Democratic Socialist Republic of Sri Lanka, and The Country Director for Maldives, Nepal and Sri Lanka of WB Mr. Faris H. Hadad-Zervos signed on behalf of the WB.
1. Kandy Multimodal Transport Terminal Development Project (KMTTDP)
The National Policy Framework of the Government has highlighted the integrated physical spatial system to address the disparities between provinces and districts in the same provinces and changes of the structural pattern of the cities. In view of historical social and economic value, number of cities including Kandy city have been identified as cities that will developed as national cities in the master plan.
The proposed KMTTD project is to construct functional transport terminal with state of art facility including bus parking facilities, access roads and drainage system at a total estimated cost of USD 69.33 million. The project will provide a robust solution against the haphazard dispersion of transport terminals and the severe traffic congestion in Kandy city while providing better facilities for passenger to transfer among different transport modes. KMTTD project is the timely requirement to make public transport more systematic and thereby making Kandy city as most attractive tourist destination.
The WB has agreed to finance this project through a loan facility of SDR 47, 137,315 (equivalent to USD 64.33 million) from concessional credit facility and USD 5 million from Non-concessional credit facility. This project will be implemented by the Urban Development Authority (UDA) under the supervision of Ministry of Urban Development and Housing.
2. Integrated Watershed and Water Resources Management Project (IWWRMP)
Government Policy Framework has given priority to agriculture sector development through advance technology innovations while promoting export of value added agro based products. Therefore, the government has focused on the sustainable approach to address all the key interconnected water resource management issues such as conservation, rehabilitating and protecting of watershed, ensuring the enhanced operational efficiency of the reservoirs and defined water prioritization among sectors.
The proposed project is to improve watershed and water resources planning and enhance the functionality of water resources infrastructure by the means of improved safety of dams and improved water distribution networks for irrigation. Under this proposed project USD 13.67 million will be allocated to watershed and water resources planning to help plan and restore the Upper Mahaweli Watershed. Another USD 57.8 million will be allocated under this project for rehabilitation of 36 dams and 19 irrigation channel systems to enhance the efficiency, safety, and durability of hydraulic assets.
The WB has agreed to finance this project through a loan facility of USD 44.50 million from concessional credit facility and USD 26.7 million from Non-concessional credit facility. This project will be implemented by the Ministry of Irrigation.
Issued by the Department of External Resources on 22 nd April 2021.
