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Overview

China Eximbank provides $147.9 million preferential buyer’s credit for the Thalpitigala Reservoir Project

Commitments (Constant USD, 2023)$157,384,292
Commitment Year2017Country of ActivitySri LankaDirect Recipient Country of IncorporationSri LankaSectorWater Supply And SanitationFlow TypeLoan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 22, 2017
Start (actual)
Dec 22, 2017
First repayment
Dec 31, 2021
Last repayment
Dec 29, 2031

Geospatial footprint

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On December 22, 2017, the Export-Import Bank of China signed a $147.9 million preferential buyer’s credit (PBC) loan agreement with the Government of Sri Lanka for the Thalpitigala Reservoir Project. The project will be located in the Badulla district in the Uva Province within the central hill country. The Thalpitigala reservoir development project falls within 3 Divisional Secretariat (DS) divisions (Kandaketiya, Haliela and Uva Paranagama) and 6 Grama Niladhari (GN) divisions (Wasanagama, Thetilla, Kokatiyamaluwa, Bogoda, Yalagamuwa and Wethalawa). The project site is accessible through Wasanagama village. The project also involves the construction of a concrete gravity dam across Uma Oya, approximately 3 km upstream of the existing Bathmedilla Anicut (near the village Hunuketiya). More detailed locational information can be found at https://www.openstreetmap.org/way/509211738#map=15/6.8849/80.9549.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Cofinancing agencies

State-owned Banks

  • People's Bank (Sri Lanka)

Receiving agencies

Government Agencies

  • Government of Sri Lanka

Implementing agencies

State-owned companies

  • Sinohydro Corporation Limited

Loan desecription

China Eximbank provides $147.9 million preferential buyer’s credit for the Thalpitigala Reservoir Project

Grace period5 yearsGrant element47.5643%Interest rate (t₀)2%Interest typeFixed Interest RateMaturity15 years

Narrative

Full Description

Project narrative

On December 22, 2017, the Export-Import Bank of China signed a $147.9 million preferential buyer’s credit (PBC) loan agreement with the Government of Sri Lanka for the Thalpitigala Reservoir Project. The PBC loan covers 85% of the total project cost, and it carried an interest rate of 2%, a commitment fee of 0.2%, a management fee of 0.2%, a maturity of 15 years, and a grace period of 5 years. The estimated total cost of the project is $174 million, and the remaining 15% of the project cost ($26.1 million) that was not covered by the China Eximbank loan was provided by the People's Bank, a state-owned commercial bank in Sri Lanka. The contractor responsible for project implementation is Sinohydro Corporation Ltd. As of March 31, 2018, funds had not yet been disbursed, but a pre-feasibility study had been completed and the PBC loan agreement had been approved. The objective of the Thalpitigala Reservoir Project is to improve the agricultural productivity in the Badulla district by providing irrigation water while enhancing provision of safe drinking water and generation of hydropower. The scope of this project includes the provision of irrigation water to new and existing lands around 1400 hectares in the area through constructing upstream of the Battmedilla anicut in the Badulla district (within Uva Province), and the provision of safe drinking water facilities to Wasanagama, Madulla, Thetilla and Beramada villages in the Kandaketiya Divisonal Secretary's Division. It also involves the construction of a hydropower station with a capacity of 15 MW that will generate 51 GWh of hydro power annually to fed the national grid. More specifically, this project will construct a concrete gravity dam in the mode of Roller Compacted Concrete (RCC) across Uma Oya, approximately 3 km upstream of the existing Bathmedilla Anicut (near the village Hunuketiya), to establish a 15.56 mcm capacity reservoir at full supply level of 454 m. The height of the proposed dam will be 45.7 m and it will result in the inundation of 96 ha of land confined mainly to the banks of the deep river valley. The head works of the project include the dam, a spillway with seven radial gates (10m x 7.2m), water intake, headrace tunnel, surge shaft, penstock, power house and new access roads. In addition to the head works the project will also involve construction of structures such as camp sites, site offices, storage areas, vehicle parks etc which can use later for community purposes. The project commencement date was December 22, 2017.