Sri Lanka : Mahaweli Water Security Investment Program

Sovereign Project | 47381-001

ADB and the Government of Sri Lanka are working together to deliver surplus water from the Mahaweli river basin to its dry zone, where scarce supplies undermine agricultural output and household incomes. The Mahaweli Water Security Investment Program is helping the government complete a decades-old program that is moving water from the country s largest river to its dry zone, made up of North Central Province, Central Province, North Western Province and Eastern Province. The project is building more than 260 kilometers of new and upgraded canals, reservoirs, and other irrigation infrastructure. It is also helping to conduct studies on improving water management and delivery systems. In addition to providing more irrigation water, the project is delivering clean drinking water to over 350,000 people, resulting in improved community health in areas where chronic kidney diseases are prevalent. The long term goal of the project is to reduce poverty while boosting economic growth and food security.

Project Details

  • Project Officer
    Ranawana, Sanath
    Sectors Group
    Request for information
  • Country/Economy
    Sri Lanka
  • Modality
  • Sector
    • Agriculture, natural resources and rural development
Project Name
Mahaweli Water Security Investment Program
Project Number
47381-001
Country / Economy
  • Sri Lanka
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
MFF Facility Concept 0088-SRI: Mahaweli Water Security Investment Program
Source Amount
Asian Development Fund US$ 105.00 million
Ordinary capital resources US$ 348.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Governance and capacity development
  • Knowledge solutions
  • Partnerships
Sector / Subsector
  • Agriculture, natural resources and rural development / Irrigation - Water-based natural resources management

Gender
No gender elements
Description
ADB and the Government of Sri Lanka are working together to deliver surplus water from the Mahaweli river basin to its dry zone, where scarce supplies undermine agricultural output and household incomes. The Mahaweli Water Security Investment Program is helping the government complete a decades-old program that is moving water from the country s largest river to its dry zone, made up of North Central Province, Central Province, North Western Province and Eastern Province. The project is building more than 260 kilometers of new and upgraded canals, reservoirs, and other irrigation infrastructure. It is also helping to conduct studies on improving water management and delivery systems. In addition to providing more irrigation water, the project is delivering clean drinking water to over 350,000 people, resulting in improved community health in areas where chronic kidney diseases are prevalent. The long term goal of the project is to reduce poverty while boosting economic growth and food security.
Project Rationale and Linkage to Country/Regional Strategy
Sri Lanka has abundant water resources but they are not distributed evenly across the country. The dry zone region (including North Central Province, Central Province, North Western Province and Eastern Province) is home to nearly a third of the country s population, with 70% of rural dwellers dependent on agriculture for their livelihood. However, the zone receives less than 1,500 millimeters of rain per year, and droughts are common, which severely constrains agricultural output. Local communities have managed this water stress by building many small cascade systems of reservoirs, transfer canals, and irrigation schemes. These have been sufficient to provide supplementary irrigation for a single paddy crop each year, and limited storage for drinking water supply. In many places, communities rely on groundwater, some of which is contaminated, causing high incidences of chronic kidney disease. Lack of year-round access to water resources constrains the agricultural and commercial production of the region, suppressing social and economic development. As a result, average household incomes are around 10% lower than in other parts of the country. This situation is expected to worsen as the population grows and rainfall in the region diminishes further due to climate change.
Impact

Agricultural production and economic growth in the North Central Province, Central Province, North Western Province, and Eastern Province improved

Food security enhanced

Project Outcome

Description of Outcome

Water supply and agricultural productivity in the project areas enhanced

Progress Toward Outcome
The achievement of outcome will be affected by the non-award of the remaining contracts due to the funding shortfall in the investment program as well as ongoing economic situation in Sril Lanka that has limited its lending headroom. The project team is exploring additional interventions once the country situation improves.

Implementation Progress

Description of Project Outputs

New and improved water conveyance and storage infrastructure constructed

Systems for improving water resources management and productivity developed

Farmers' access to agricultural inputs supported.

Status of Implementation Progress (Outputs, Activities, and Issues)

The consulting package was awarded in Q3 2018. Final report has been submitted to the government in 2022.

This consulting services package was planned to be initiated in 2022 under Tranche 3. Recruitment is delayed until Tranche 3 processing is confirmed. TOR is being finalized.

MOP fertilizer contract awarded. distribution ongoing.

Procurement activities ongoing for first phase of farmer support program

Financing of this infrastructure is time-sliced over multiple tranches. Designs and bid documents for all tranches have been completed. Two of the seven contracts are ongoing, one contract has been closed, and the remaining four contracts will not be awarded in the investment program due to funding shortfall and remaining MFF availability period. Additional financing for these contracts are being explored.

Financing of this infrastructure is time-sliced over multiple tranches. Designs and bid documents for Tranche 1 have been completed. Two of eight works contracts are ongoing, once contract has been closed, and remaining five contracts will not be awarded in the investment program due to funding shortfall and remaining MFF availability period. Additional financing for these contracts are being explored.

Financing of this infrastructure is only under Tranche 1. Designs and bid documents for all 6 packages have been completed and the packages have been awarded. Five contracts are physically completed, and one contract is at 85% completion. An additional small works package will be awarded by 2023/24.

Geographical Location
Dambulla, Elahera, Minipe

Summary of Environmental and Social Aspects

Environmental Aspects
The first tranche of the investment program is categorized A for environment in accordance with ADBs Safeguard Policy Statement (2009). Individual environmental assessments have been undertaken for the three projects. Environment impact assessments for the NWPCP and UECP, each categorized A, and an initial environment examination for MLBCRP are prepared. Since the investment program is time-sliced and implementation of all three projects will begin under the first tranche, the environmental assessments cover the entire investment program. All subsequent tranches will also be categorized A for environment.
Involuntary Resettlement
The first tranche of the investment program is categorized B for involuntary resettlement impacts, based on identified involuntary resettlement impacts of the separate projects: the NWPCP is category B, while the UECP and MLBCRP are both category C. The resettlement framework for the investment program guides the formulation of resettlement implementation plans for the first and subsequent tranches. A resettlement implementation plan was prepared to address the involuntary resettlement impacts of the NWPCP under the first tranche.
Indigenous Peoples
The preliminary work that the mission carried out and the environmental impact assessment study of the project areas that the consultants engaged by the EA already carried out, did not identify any settlement of Indigenous Peoples communities in the project areas.

Stakeholder Communication, Participation, and Consultation

During Project Design
The main stakeholders include Ministry of Mahaweli Development and Environment (MMDE), the Department of Irrigation and the Mahaweli Authority of Sri Lanka in the project provinces, the farmers in the command areas who are the end users of the irrigation water and beneficiaries, and approximately 194 project affected families in the entire MFF who will need to be relocated to accommodate the new canals for water transfer. The MMDE is responsible for the project design. The project affected families will participate through consultations in the resettlement planning exercise.
During Project Implementation
The primary stakeholders comprising the Ministry of Mahaweli Development and Environment, the Department of Irrigation and the Mahaweli Authority of Sri Lanka are already involved with the technical design of the project with due consideration for minimally affecting human settlements and increasing the area of the elephant habitat that the humans have encroached upon. The project affected families including the poor and the excluded, will be involved in the project design with reference to developing a resettlement framework and the resettlement planning exercise.

Business Opportunities

Consulting Services
All consulting services will be carried out using ADB's Consulting Guidelines. Advance contracting will be used. Individual consultants were recruited to undertake the PPTA.
Procurement
All procurement activities will be carried out using ADB's Procurement Guidelines.

Contact

Responsible ADB Officer
Ranawana, Sanath
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)

Timetable

Concept Clearance
02 Apr 2014
Fact Finding
13 Nov 2014 to 26 Nov 2014
MRM
24 Mar 2015
Approval
24 Jun 2015
Last Review Mission
-
Last PDS Update
27 Mar 2023

Funding

MFF Facility Concept 0088-SRI

Financing Plan
  Total (Amount in US$ million)
Project Cost 561.00
ADB 453.00
Counterpart 108.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Mahaweli Water Security Investment Program: North Central Province Canal Project (NCPCP-5) Resettlement Implementation Plan Resettlement Plans Jun 2024
Mahaweli Water Security Investment Program: Farmer Livelihood Improvement Program Subproject Environmental and Social Due Diligence Report Safeguards Due Diligence Reports Feb 2024
Mahaweli Water Security Investment Program: Updated Environmental Assessment and Review Framework Environmental Assessment and Review Framework Dec 2023
Water Resources Development Investment Program: Upper Elehara Canal Updated Environmental Impact Assessment Addendum No. 2 Environmental Impact Assessments Sep 2023
Mahaweli Water Security Investment Program: North Central Canal Project Resettlement Implementation Plan Resettlement Plans Oct 2022
Mahaweli Water Security Investment Program: Resettlement Monitoring and Evaluation Report (January-June 2019) Social Monitoring Reports Sep 2019
Mahaweli Water Security Investment Program: Upper Elahera Canal Project Environmental Monitoring Report (July–December 2018) Environmental Monitoring Reports Apr 2019
Mahaweli Water Security Investment Program: Resettlement Monitoring and Evaluation Report (July-December 2018) Social Monitoring Reports Mar 2019
Mahaweli Water Security Investment Program: Updated Resettlement Framework Resettlement Frameworks Mar 2019
Water Resources Development Investment Program - Tranches 1 and 2: Upper Elahera Canal - Addendum to Environmental Impact Assessment Environmental Impact Assessments Sep 2017
Water Resources Development Investment Program - Tranches 1 and 2: Upper Elahera Canal Environmental Management Plan Environmental Management Plans Aug 2017
Mahaweli Water Security Investment Program - Tranche 1: North Western Province Canal Project Resettlement Plan Resettlement Plans Mar 2015
Mahaweli Water Security Investment Program: Resettlement Framework Resettlement Frameworks Mar 2015
Water Resources Development Investment Program: Upper Elehara Canal Environmental Impact Assessment Environmental Impact Assessments Dec 2014
Water Resources Development Investment Program: North Western Province Canal Project Environmental Impact Assessment Environmental Impact Assessments Dec 2014
Mahaweli Water Security Investment Program: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Nov 2014
Mahaweli Water Security Investment Program - Tranche 1: Minipe Left Bank Canal Rehabilitation Project Initial Environmental Examination Initial Environmental Examination Oct 2014

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

  • 24 Jun 2015 | News Release

    ADB Loan to Help Sri Lanka End Water Scarcity in Dry Zone

    ADB has approved a $453 million loan to help Sri Lanka deliver surplus water from the Mahaweli river basin to its northern dry zone, where scarce supplies undermine agricultural output and household incomes.

Tenders

Tender Title Type Status Posting Date Deadline
SRI: Water Resources Development Investment Program Advance Notice Archived

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Mahaweli Water Security Investment Program: Procurement Plan Procurement Plans Feb 2015