Annual Report 2010 - Ministry of Finance and Planning

5 | FOREIGN FINANCINGonly be second to the Victoria andRandenigala dams. The water will begathered in a reservoir, which will havea capacity of 125 acres. The seconddam will come up across the MahaThotilla Oya, which is a subsidiaryof Uma Oya. Its reservoir, which willspan 6.5 acres, will retain the water.The water from these two reservoirswill be diverted to the undergroundhydropower plant to be built near theRawana Ella through a 19-kilometrelong tunnel with a diameter of 3.5metres.The project will generate 300GWhenergy, use diverted water to meetthe future domestic and industrialwater needs in the Uva Province andHambantota District, and developabout 5,000 acres of new irrigatedland in Hambantota and Monaragaladistricts and about 3,000 acres of newlands in the Kuda Oya catchment area.Moragahakanda KalugangaDevelopment ProjectThe Kaluganga Development projectwhich is part of the Mahaweli Developmentprogram has been interlinkedwith the implementation of theMoragahakanda Development project.The main objectives of the project areto increase the availability of irrigationand drinking water, expand the existingirrigable areas in Kaluganga basin andthereby increase food production andimprove the standard of living in Matale,Anuradhapura, Polonnaruwa andTrincomalee Districts.The main components of the projectare the construction of a 67m highdam across Kalu Ganga River at Pallegamuwa,a 13 km long transfer canalincluding a 3km tunnel to transferwater from the proposed Kalu Gangareservoir to proposed Moragahakandareservoir and a 7km long tunnel fromthe Bowatenna reservoir to Lenadora,upgrading of the existing 33km longHuruluwewa canal and the extensionof Yan Oya canal with a total lengthof 4.4km and Eru wewa with a totallength of 7km.The project includes three phases. Thetotal estimated cost of phase I of theproject is USD 167 million. The estimatedcost of the Kalu Ganga Dam, whichis the main construction component ofthe project erected at pallegama witha height of 67m and length of 546mand two saddle dams is USD 102.2million. Of this amount USD 37 millionis provided by the Kuwait fund forResettlement Works in Progress - LaggalaPallegamaArab Economic Development. Of thebalance, USD 46 million and USD 19.0million will be provided by the SaudiFund for Development and the OPECfund for International developmentrespectively. The project is scheduledto be completed by 2014.The main dam, Moragahakanda, isexpected to be constructed acrossthe Amban-ganga, which is a majortributary of the Mahaweli river. TheJICA financing is expected for theimplementation of the Moragahakandacomponent which will be the maincomponent, and involves the constructionof a much larger dam and apower house of 20MW, resettlementarea development, social and irrigationinfrastructure development etc.JICA has agreed to provide aroundUSD 80 million in year 2011 to undertakethe detailed designs for the headworks, irrigation and resettlement areadevelopment activities. After completionof the detailed designs, JICA willprovide financial assistance for theconstruction of the main dam, saddledam, hydropower station and transmissionline. Under this project, a provisionof water to an extent of 80,000ha is tobe ensured in Matale, Anuradhapura,Polonnaruwa and Trincomalee Districtswhich includes new lands of 13,000hafor cultivation.Smallholder PlantationsEntrepreneurship DevelopmentProgrammeAn agreement was signed between theGovernment of Sri Lanka and InternationalFund for Agricultural Development(IFAD) on 8th May 2007, to providefinancial assistance of USD 22.5 millionfor the Smallholder Plantation EntrepreneurshipDevelopment Programme to:272