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Overview

China Eximbank to finance Towns East of Polonnaruwa Water Supply Project in Sri Lanka

Commitments (Constant USD, 2023)$357,235,184
Commitment Year2018Country of ActivitySri LankaDirect Recipient Country of IncorporationSri LankaSectorWater Supply And SanitationFlow TypeLoan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018

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)

Receiving agencies

Government Agencies

  • Government of Sri Lanka

Implementing agencies

State-owned companies

  • China Harbour Engineering Co., Ltd. (CHEC)

Loan desecription

China Eximbank to finance Towns East of Polonnaruwa Water Supply Project in Sri Lanka

Interest typeUnknown

Narrative

Full Description

Project narrative

In 2018, the Government of Sri Lanka was negotiating a $355 million loan agreement with China Eximbank for the Towns East of Polonnaruwa Water Supply Project. The purpose of this project is to supply safe drinking water to a population of about 262,481 residing in Welikanda, Dimbulagala, Thamankaduwa, Lankapura, Hingurakkdoda and Elahera Divisional Secretariat Divisions. Minister of City Planning and Water Supply, recommend that the contract for the implementation of the project be awarded to China Harbor Engineering Company Ltd (CHEC). In May 2016, Sri Lanka's The Sunday Times reported that President Sirisena’s Chief of Staff, Ranjan Dharmawardena, provided a copy of a letter submitted by China Harbour Engineering Company Ltd through the Chinese Embassy, expressing its willingness to implement the Towns East of Polonnaruwa Water Supply Project while conducting feasibility studies free of charge. The letter indicates that the company first submitted an EOI for the project on March 24, 2015. “We would like to again express our keen interest for the implementation of the captioned project as a total turnkey solution with favourable finance assistance from the Government of China,” it said. There is no indication that a loan agreement has been signed. On May 14, 2019, Sri Lankan President Maithripala Sirisena said he hoped that CHEC would launch the preliminary work of the water supply project in the eastern towns of Polonnaruwa and construct it as soon as possible to solve the chronic kidney disease and other problems of about 300,000 residents in the area caused by poor drinking water supply.