The Asian Development Bank (ADB) is to provide more than US$ 80 million (€ 60 million) to upgrade water and sanitation systems in Sri Lanka's Northern and Northwestern Provinces. Water resources are scarce in this 'dry zone' and current supply systems are obsolete and neglected.

The funds, which will come from the ADB's Asian Development Fund, are to be provided in the form of a loan of US$ 59.58 million (€ 44.52 million) and a grant of US$ 23.22 million (€ 17.45 million). They will be spent through the Dry Zone Urban Water and Sanitation Project and will be used to rehabilitate and improve water and sanitation services in the towns of Chilaw, Mannar, Puttalam, and Vavuniya.

The total costs of the project will be US$ 113.33 million (€ 84.69 million). The Netherlands Trust Fund for the Water Financing Partnership Facility will provide a US$ 2 million (€ 1.5 million) grant and the Government of Sri Lanka will contribute a further US$ 28.33 million (€ 21.17 million)..

The project will run until 2013. By the time it is completed, it will supply water to around 200,000 people in the target areas and improve sanitation for about 100,000. It will also help improve service delivery by decentralising activities to the National Water Supply and Drainage Board regional offices.

Related news:

• Sri Lanka: Tangalle water supply scheme brings safe water to thousands, Source South Asia, 17 Sep 2008;
• Sri Lanka, Central Province: opening of Wegala water supply scheme, Source South Asia, 17 Sep 2008

Web sites: ADB - Asian Development Fund | Dry Zone Urban Water and Sanitation Project | Water Financing Partnership Facility

Source: ADB, 02 Dec 2008

Tags: financing, south asia, urban wash