47381-005: Mahaweli Water Security Investment Program - Tranche 2 | Asian Development Bank

Sri Lanka: Mahaweli Water Security Investment Program - Tranche 2

Sovereign (Public) Project | 47381-005 Status: Approved

The Mahaweli Water Security Investment Program (the investment program) will accelerate the economic activities of Sri Lanka's northern dry zone region by transferring surplus water from the Mahaweli river basin for irrigation, drinking and commercial purposes. It will develop bulk water conveyance and storage infrastructure planned under the North Central Province Canal Program (NCPCP), a high priority program of the government that will support completion of the Mahaweli Development Program (MDP), which started in 1973.

Project Details

Project Officer
Gore, Lance W. South Asia Department Request for information
Country
  • Sri Lanka
Sector
  • Agriculture, natural resources and rural development
 
Project Name Mahaweli Water Security Investment Program - Tranche 2
Project Number 47381-005
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3625-SRI: Mahaweli Water Security Investment Program - Tranche 2
Ordinary capital resources US$ 179.00 million
Loan 3626-SRI: Mahaweli Water Security Investment Program - Tranche 2
concessional ordinary capital resources lending / Asian Development Fund US$ 31.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Water-based natural resources management

Gender Equity and Mainstreaming No gender elements
Description

The Mahaweli Water Security Investment Program (the investment program) will accelerate the economic activities of Sri Lanka's northern dry zone region by transferring surplus water from the Mahaweli river basin for irrigation, drinking and commercial purposes. It will develop bulk water conveyance and storage infrastructure planned under the North Central Province Canal Program (NCPCP), a high priority program of the government that will support completion of the Mahaweli Development Program (MDP), which started in 1973.

Key components of the MDP were completed in the 1980s, notably several irrigation systems and large dams for hydropower; however, the planned components for water transfers to the northern dry zone were not implemented largely because of the prolonged conflict. After the conflict ended in 2009, the government prioritized completion of the MDP by initiating the NCPCP. The investment program supports the government's sector objective of ensuring water availability to water users, providing water in adequate quantities with improved management, enhancing productivity and water user efficiency, and addressing the spatial variation of water availability, climate change and disaster vulnerability, as described in the Public Investment Programme 2017-2020. The outcome will be access to water resources for agricultural and drinking purposes in project areas secured.

ADB and the government signed the financing framework agreement (FFA) for the investment program on 23 April 2015. On 24 June 2015, the Board approved the provision of loans to Sri Lanka under a multitranche financing facility (MFF) of up to $453 million equivalent to be implemented between July 2015 and December 2024. The MFF comprises three tranches and uses the time-slicing approach with individual tranche outputs covering pieces of the overall facility's outputs: (i) new and improved water conveyance and storage infrastructure constructed; (ii) systems for improving water resources management productivity developed; and (iii) multidisciplinary investment program management operational. Output 1 under the investment program will implement three projects: (i) the Upper Elahera Canal Project (UECP) comprising about 101 kilometers (km) of water conveyance infrastructure linking the existing reservoirs at Kalu Ganga, Moragahakanda, Huruluwewa, Eruwewa, and Mahakanadarawa, which supply existing irrigation and town supply schemes; (ii) the North Western Province Canal Project (NWPCP) that will construct about 91 km of new and rehabilitated conveyance channels and two new reservoirs at Mahakithula and Mahakirula to transfer water from the Dambula Oya River and Wemedilla reservoir to command existing irrigation and town supply schemes; and (iii) the Minipe Left Bank Canal Rehabilitation Project (MLBCRP) that will increase storage in its head reservoir and rehabilitate about 74 km of existing canals to improve conveyance and reliability of service to existing farmers.

Project Rationale and Linkage to Country/Regional Strategy Tranche 2 outputs will have two main outputs: (i) completion of new and improved water conveyance and storage infrastructure increased; and (ii) multidisciplinary investment program management operational. Output 1 includes construction of about 21 km out of 101 km of conveyance channels under the UECP and the continuation of construction activities under the NWPCP that were initiated under Tranche 1. Specifically, Tranche 2 will finance: (i) partial construction of a 28 km of tunnel, using tunnel boring machine and drill and blast construction methods; (ii) partial construction of about 8.8 km of new tunnels and channel using drill and blast construction method; (iii) continuing construction of the Mahakithula and Mahakirula Reservoirs, and Mahakithula Inlet Tunnel that will be initiated under Tranche 1; and (iv) project management recurring costs.
Impact Agricultural production improved and economic growth sustained in the North Central, Central North Western, and Eastern Provinces
Project Outcome
Description of Outcome New and improved water conveyance and storage infrastructure constructed
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Completion of new and improved water conveyance and storage infrastructure increased

Multi-disciplinary investment program management operational

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Dambulla, Elahera, Minipe
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The UECP is classified as Category A' for environment in accordance with ADB's Safeguards Policy Statement (SPS) 2009. The UECP Environmental Impact Assessment (EIA) was prepared in 2014 and was disclosed on ADB's website in January 2015. The EIA has been updated to address design changes that include a slight increase in tunnel muck as compared to that documented in the original EIA. New disposal sites have been identified and additional access roads proposed. The work includes widening or rehabilitation of 12 km of existing roads and construction of 2 km of new access roads. The environmental impacts of these design changes are addressed in an addendum to the EIA, which included additional ecological surveys. Stakeholders were consulted on the design changes. Construction of tunnels in lieu of cut and cover canals will minimize impacts on forest and wildlife reserves. The EIA addendum will be disclosed on ADB's website.
Involuntary Resettlement Two civil works packages will be contracted under Tranche 2. Due diligence found that one package will not involve any land acquisition. However, the second package will require the permanent acquisition of about 1,655 square meters of land for expansion of access roads. For both packages, the contractors will require temporary land for construction facilities such as work camps and batching plants. These facilities will be in areas owned by MMDE and areas managed by the Department of Forest and the Department of Wildlife Conservation, for which MMDE will obtain permits prior to implement the works. On this basis, Tranche 2 is categorized as a _B_ in accordance with SPS 2009. A Resettlement Plan and a Due Diligence Report are being prepared for the works packages in accordance with ADB SPS 2009 and Government of Sri Lanka requirements on land acquisition. These will be disclosed on ADB website.
Indigenous Peoples Tranche 2 will not involve areas owned and inhabited by indigenous people and will not affect indigenous people. Therefore, the tranche is categorized as " C"' in accordance to the SPS 2009.
Stakeholder Communication, Participation, and Consultation
During Project Design The investment program includes a comprehensive stakeholder communication and engagement plan that includes regular consultation with stakeholders during project design and implementation. Further details can be found on ADB's and the project's website.
During Project Implementation The investment program includes a comprehensive stakeholder communication and engagement plan that includes regular consultation with stakeholders during project design and implementation. Further details can be found on ADB's and the project's website.
Business Opportunities
Consulting Services Program Management, Design and Supervision Consultant.
Procurement Two civil works packages.
Responsible ADB Officer Gore, Lance W.
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Ministry of Mahaweli Development & Environment
[email protected]
82, Sampathpaya, Rajamalwatte Road, Battaramulla, Sri Lanka
Timetable
Concept Clearance -
Fact Finding -
MRM 19 Oct 2017
Approval 13 Dec 2017
Last Review Mission -
Last PDS Update 15 Dec 2017

Loan 3625-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2017 - - 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 211.00 Cumulative Contract Awards
ADB 179.00 13 Dec 2017 0.00 0.00 0%
Counterpart 32.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2017 0.00 0.00 0%

Loan 3626-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2017 - - 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 31.00 Cumulative Contract Awards
ADB 31.00 13 Dec 2017 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2017 0.00 0.00 0%

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.

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Evaluation Documents See also: Independent Evaluation

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