France provides $ 70 m loan for Ambatale Water Supply System Improvement, Energy Saving Project

Tuesday, 30 September 2014 01:54 - - {{hitsCtrl.values.hits}}

An agreement was signed by the Government with the French Development Agency (AFD) yesterday to obtain a loan of $ 70 million (approximately Rs. 9,000 million) to finance the implementation of the Ambatale Water Supply System Improvement and Energy Saving Project.

In order to support its ambition to transform the Colombo city to a world-class city, the Government has been implementing the Greater Colombo Water and Wastewater Management Improvement Investment Program that would assure uninterrupted water supply and sanitation services to city dwellers. A series of projects have been scheduled under this program. Besides Asian Development Bank’s (ADB) commitment to finance several components of the above program, AFD has agreed to finance the Ambatale Water Supply System Improvement and Energy Saving Project. Major works of the project includes upgrading of the Ambatale treatment plant, installation of new water transmission pipelines of 14.2 km and construction of a ground reservoir. The total cost of the project is estimated at $ 100 million. Of the amount, AFD provides $ 70 m. The remaining amount of $ 30 million will be borne by the Government of Sri Lanka. This project will increase treatment efficiency and reduce water and energy losses during water treatment and transmission. The water loss reduction, due to the equipment upgrade, will allow using saved water in new areas. The energy saving will be converted in substantial cost saving on a strategic item as energy costs comprise 20% of the NWSDB expenses. A large number of people will benefit from the project and gain access to better quality water. The decreasing power requirement will also help reduce operating costs, thus improving Water Board revenues and decreasing emissions of greenhouse gases. The project will be implemented by the National Water Supply and Drainage Board under the supervision of the Ministry of Water Supply and Drainage. Regional Director for South East Asia Aude Flogny- Catrisse signed the agreement on behalf of the AFD while Ministry of Finance and Planning Secretary Dr. P.B. Jayasundera signed on behalf of the Government of Sri Lanka. French Ambassador in Sri Lanka Jean Paul Monchau also participated at this occasion.