The Government entered into a loan agreement with the Asian Development Bank to obtain a loan of USD 60 million from the Asian Development Fund to implement the PuraNeguma – Local Government Enhancement Sector Project. This will be utilized for the Implementation of the safe drinking water supply schemes for the Chronic Kidney Disease prone areas in the districts of Anuradhapura, Polonnaruwa, Matale, Badulla, Monaragala, Puttalam and Kurunegala.
In addition to the provision of safe drinking water to the vulnerable communities of CKD prone areas, the project will contribute to improve priority infrastructure and basic services delivery in 29 Pradeshiya Sabhas in Western, Southern, Central, North Western and Uva Provinces. Further, proceeds of the loan will be utilized for advancing policy reforms of local governments and strengthening their capacity.
Dr. R H S Samarathunga, Secretary to the Ministry of Finance and Ms. Sri Widowati, Country Director of ADB Sri Lanka Resident Mission signed the agreement on behalf of Sri Lanka and the ADB respectively at the Ministry of Finance Wednesday (02)
The ADB had also previously provided US $ 59 million for projects ending December 2016. This earlier financial assistance was provided for improvement of basic infrastructure facilities such as providing water supplies, development of road, drainage and culverts, maternity and child care centres at local government areas in the seven provinces. 108 Local Government institutions were provided with Rs 50 million each and 147 out of 184 projects have been completed.
The total investment cost of the project under the agreement signed today will be US$ 67.84 million whereas the Government’s contribution on the project will be US$ 7.84 million. Around 75 per cent of the loan will be utilized for water supply schemes in CKD prone areas and the rest for the local infrastructure and capacity building in local authorities selected for the project. The Ministry of Provincial Councils and Local Government will be the Executing Agency of the project while respective provincial councils will implement the project at provincial levels.