China Exim Bank loans Sri Lanka 13B Rs. for Lower Mulwathu Oya reservoir project

In 2016, Exim Bank of China agreed to provide a 13 billion Rs. loan for the Lower Mulwathu Oya Multi Sector Development Project in the Anuradhapura and Vavuniya Districts. 13,215 ha of lands will be irrigated benefiting 10,000 farm families. This project envisages construction of 209 MCM capacity reservoir, 3,590 m long earth dam, Radial Gated Spillway, Left Bank, Right Bank and River Sluices, canal systems to new settlement area, and a power house. Stored water at proposed reservoir is released through the river sluice to the Malwathu Oya and picked up at Tekkam Anicut (24 Km d/s from Proposed Malwathu Oya Reservoir). From Tekkam Anicut 500 Cusec and 250 Cusec capacity right bank and left bank canals respectively convey water to irrigate 24,450 acres and 6,230 acres under existing Giant’s tank and Akitamuruppu tank respectively. 2,000 acres of new irrigable lands just downstream of the Reservoir is proposed for introducing commercial farming and 675 acres of lands have been identified for paddy cultivation. Other expected benefits are the provision of 2.0 MCM of domestic water annually for the new settlers, generation of 4.28 GWH Hydro power energy annually and the improvement of agricultural activities, livestock development, and other infrastructure development. As of 2016, EIA had already been completed and cabinet approval had been obtained for implementation with CAMCE - China. Technical and financial proposals have been called from CAMC Company LTD for an EPC contract. MSD approval has been obtained for initial project carder. According to "Progress of development projects and programmes being implemented in 2017," only 15% of land surveying has been completed and financial progress is very low. The construction of the Malwathu Oya reservoir is expected to commence in the first quarter of 2018.

Additional details

The concessionality of this loan is unknown, so flow class was coded as Vague (Official Finance).

Number of official sources

5

Number of total sources

7