Annual Report 2008 - Ministry of Finance and Planning

2. Fiscal Developments - 2008
105
Box 2.7
Water and Sanitation Services Expanded
The total investment in the water supply and sanitation
sector has recorded a steady increase during the period of
2005-2008. This increase has amounted to more than 125
percent. Investment in the sector in 2008 was Rs. 25,672
million. Out of this amount, Rs. 20,384 million (79 percent)
has been allocated for large-scale schemes that covers
mainly the major towns and suburbs of Kandy, Kalutara,
Nuwara Eliya, Anuradhapura, Ampara, Galle, Ambalangoda,
Negambo, Potuvil, Nawalapitiya etc. Several small-scale
schemes have been augmented island wide. A significant
amount of investment has been made in 2008 to establish
sewerage systems in selected industrial townships. Major
part of this investment consisted of large-scale projects
funded by donors.
Investment in Water Supply and Sewerage Sector
2005-2008
2005 2006 2007
Rs.mn
2008
Water Supply
Major Schemes 10,736 14,066 12,621 20,384
Small Town
Schemes
1,500 1,538 1,293 1,540
Rural Schemes 595 1,418 1,679 1,667
Sewerage
Township
Sewerage
328 1,001 4,145 2,081
Total 13,159 18,023 19,738 25,672
Source: Department of National Budget
High Cost Water Infrastructure
Urban Water Supply; Township water supply involves
a high cost to construct treatment plants, storage tanks,
reservoirs, and transmission & distribution networks. The
following are few main constructions completed in 2008;
• Procurement & installation of two package treatment
plants of 10 million gallons per day each at Ambatale
and Negombo at a cost of around Rs. 2,000 million.
• 260 km long distribution system in Hikkaduwa-
Ambalangoda-Balapitiya at a cost of around Rs. 1,000
million.
• Distribution systems of 15 km at Ginigathhena and 25
km at Rikillagaskada with two treatment plants have
been completed at a cost of abrond Rs. 1,500 million.
• Wastewater treatment system in Batticaloa Hospital
& Prison spending Rs. 91 million and 3.6 km storm
water drainage system in Batticaloa at a cost of Rs. 60
million.
• 107 km long distribution and elevated water towers at
Polonnaruwa at a cost of Rs. 533 million.
• 62 km of distribution pipelines and water towers
completed spending Rs. 430 million in Hambantota.
• In Muttur, a 71 km distribution pipe system at a cost of
Rs. 541 million.
• 1000 m3 capacity water tower at Panadura, Horana-
Bandaragama 26 km distribution extension, 20 km
distribution system at Raigama spending around Rs.
400 million.
On average, the government incurs a capital cost of more
than Rs. 200,000 per pipe-water connection. However, Water
Board charges consumer only about Rs. 38,000 per connection
including a minor cost recovery charge. However, due to
continuous investment, the total assets of water supply
and sanitation related infrastructure has significantly been
increased during the past few years. In 2007, the total assets
value of the Water Board was Rs. 100,813 billion and this has
increased to Rs. 115,267 billion in 2008.
Rural Water Supply; Government spends about Rs. 15,000
per household (Rs. 12,600 to build a well, Rs. 13,300 for a tube
well, Rs. 18,500 for gravity pipe borne water connection) in
rural water supply schemes. In case of these the community
contributes 20 percent of the cost, which amounts to about
Rs. 2,500 per family depending on the facility they obtain.
Sewerage; On average, the capital cost of a sewerage
connection is around Rs. 300,000 – 500,000 in areas where
the systems are newly built. It is 2-3 times higher than that
of a water connection. Sewerage systems are available only
in few urban areas and those are managed by Municipal
Councils and the Water Board. The Water Board charges
only Rs. 35,000- 50,000 per new sewerage connection.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008