Water supply and fishnet factory projects for north

Funding provided by the ADB and Indian government

Two grants are being offered by the Asian Development Bank (ADB) and Indian government for two projects in the north.

The ADB will co-finance a grant of US$ 1.5 million for the Point-Pedro water supply scheme while the government owned Jaffna - Gurunagar Fishnet Factory- Northsea Ltd. will be developed with Indian assistance. Cabinet approval was given to both these projects according to Media Minister Keheliya Rambukwella.

On a proposal made by the President as Minister of Finance and Planning Cabinet approval was granted to enter into a grant agreement with the ADB to obtain a grant of US$ 1.5 million to implement the Eechchalampattu and Point-Pedro Water supply schemes.

Under the Conflict Affected Region Emergency (CARE) Project the ADB has provided US$150 million for implementation of a multi-sector project in the Northern and North Central Provinces which consists of projects such as road connectivity, provision of basic utilities, basic social services and infrastructure. The water supply schemes of Echchilampattu and Point-Pedro are planned to be implemented under the water supply sub-component of this project. About 22,000 people living in the project area will be directly benefited by this project.

Meanwhile, Cabinet also approved a grant to develop and expand the Fishnet Factory at Gurunagar in Jaffna. A sum of Rs. 152 million in financial assistance will be obtained from the Government of India under its Small Grant Assistance Programme to develop the factory which was damaged during the conflict.

Fishing industry has been a major economic activity and a source of livelihood in the Northern Region during the past, Minister Keheliya said adding that the seafood production in Jaffna in 2010 was 20,740 MT and is expected to be increased up to 25,000 MT per annum this year.