Govt. gets Rs. 6 billion support from Hungary

In considering the request made by the Government of Sri Lanka, the Hungarian Export-Import Bank Private Ltd Company (Hungarian Exim Bank) has agreed to provide financial assistance of Euro 35 million (around Rs. 6 billion) for the rehabilitation of Labugama and Kalatuwawa Water Treatment Plants.

Finance Secretary Dr. P.B. Jayasundera shakes hand with Dr. Viktor Nagy, Deputy Chief Executive Officer Hungarian Exim Bank after signing the financing agreement

Under this project, the water treatment process of the two plants will be transformed to a high-tech process, which will improve the water quality significantly. The production capacity of Labugama and Kalatuwawa plants would also be increased from 45,000m3/day to 60,000m3/day and 52, 000m3/day to 90,000m3/day respectively. Total increase of the production capacity would be 53,000m3/day.  The total population of 700,000 in the areas of Colombo Municipal Council and the areas of Kolonnawa, Ja-Ela, Maharagama, Homagama, Pannipitiya, Piliyandala, Mattegoda and Biyagama will be benefitted from this project.

The National Water Supply and Drainage Board will implement the project under the supervision of the Ministry of Water Supply and Drainage and the project is expected to be completed in early 2015.  The water requirement of most of the residents living in the Colombo Municipal Council area and suburbs is served from Ambatale, Labugama and Kalatuwawa water treatment plants. Labugama and Kalatuwawa water treatments plants constructed in 1886 and 1957 respectively supply 13.5 % of the water requirement of Colombo City and suburbs.

At present, Labugama and Kalatuwawa water treatment plants produce 45,000m3/day 52,000m3/day of treated water respectively. Rapid growth of population including the daytime population in Colombo has resulted in increase water demand.

On the other hand, various problems of raw water quality and deterioration of plants especially in the sand filters have reduced the production capacity of these two plants. It is therefore, required to increase the capacity of existing water treatment plants to cater for the rapid demand. As both Labugama and Kalatuwawa water treatment plants are situated at high elevation, rehabilitation and augmentation of these two plants will enhance the supply of low cost water to Colombo City with a minimum maintenance.

The signing of the two loan agreements pertaining to the above project took place at the Ministry of Finance and Planning.