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

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.

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