Saudi Fund provides additional loan for Kaluganga project | Sunday Observer

Saudi Fund provides additional loan for Kaluganga project

22 July, 2018
Dr. R.H.S. Samaratunge and Yousef Ibrahim Al Abdulrahman Al Bassam exchange the agreement.
Dr. R.H.S. Samaratunge and Yousef Ibrahim Al Abdulrahman Al Bassam exchange the agreement.

The Saudi Fund for Development will provide an additional loan of Saudi Riyal (SAR) 60 million (US $ 16 million) for the Kaluganga Development Project.

The Kaluganga Development Project is being implemented by the Ministry of Mahaweli Development and Environment with the financial assistance of the Saudi Fund for Development (SFD), Kuwait Fund for Arab Economic Development (KFAED) and OPEC Fund for International Development (OFID).

The Kaluganga reservoir has a capacity of 265 million cubic metres (MCM) of water and will divert 100 MCM annually to the Moragahakanda reservoir. Under this project, it is expected to develop new irrigable lands of nearly 3,000 ha in the Kaluganga basin. Unforeseen geological conditions in the foundations and necessary design revisions have led to price increases and the funds available from the above donors is not sufficient to complete the balance work of the project.

SFD has agreed to provide an additional loan of SAR 60 million (USD 16 million, Rs. 2,560 million) to finance a part of the shortfall.

The Government of Sri Lanka has already entered into agreements with KFAED and OFID to finance a part of the balance of the shortfall.

The agreement was signed last week at the Ministry of Finance and Mass Media by Dr. R.H.S.Samaratunge, Secretary to the Ministry of Finance and Mass Media and Yousef Ibrahim Al Abdulrahman Al Bassam, Vice Chairman and Managing Director of the Saudi Fund for Development. 

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