Annual Report 2008 - Ministry of Finance and Planning

2. Fiscal Developments - 2008
113
Box 2.8
Investing in Irrigation Contd.
in 2009, for contract payments after finalization of the
financing agreement and to commence work on the
project.
• Phase II of the Sustainable Water Assistance
Management Project commenced with the assistance
of the Australian government in 2008. It is implemented
jointly by the Department of Agriculture, Agrarian
Development and Sri Lanka Samurdhi Authority. 3,000
numbers of Solar power Drip irrigation systems have
been imported spending Rs. 781 million by the end
of 2008. These systems are being distributed among
Dry Zone farmers. Rs. 800 million was allocated for
2009 to import the balance sets of 2,000 Drip irrigation
systems.
Northern and Eastern Revival
Government has given highest priority for the development
of Northern and Eastern provinces with the clearance of
terror activities in these areas. Around Rs. 1 billion have
been invested for irrigation purposes through various
implementing agencies such as the Ministry of Nation
Building, Provincial Councils, the Department of Irrigation
and the Department of Agrarian Development etc. in 2008
mainly in the cleared areas of both Provinces. Under Reawakening
project of the Ministry of Nation Building, the
rehabilitation work on 4 major schemes namely Giant tank
in Mannar, Allai Extension scheme in Trincomalee, Rugam
Scheme in Batticaloa & Karawahu drainage scheme in
Ampara were carried out at a cost of Rs. 123 million.
Future Initiatives for Investment
• Invest in new multipurpose irrigation schemes while
investing in rehabilitation of abandoned and existing
irrigation systems (rehabilitate suitable small tanks
or schemes) – giving priority to the development of
irrigation schemes in Northern and Eastern Provinces.
• Watershed development, water management and
operation & maintenance (O&M) of irrigation schemes
through farmer participation and use of new technology
- establishing viable funding mechanisms (Farmer –
Government joint funding for O&M based on Public
Private Partnerships).
• Invest in transferring water through diversion to water
short schemes outside the basin (trans-basin linkages).
• Increase productivity of a unit of water through improved
techniques.
• Minimize wastage of funds due to overlapping &
duplication of functions through better coordination
among and within implementing agencies.
Work has not yet commenced in schemes selected in uncleared
areas. Implementing agencies expect security
clearance, assurance for mines free environment for
transportation of construction materials in some areas. In
2009, allocation has been increased approximately up to
Rs. 2.5 billion, for these provinces through various foreign
assistance projects such as Re-awakening, NECORD II,
PEACE, TIP etc. aiming to rehabilitate major, medium
& minor irrigation schemes in the Northern and Eastern
provinces.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008