Kuwait to provide supplementary loan

Deputy Director General,  Kuwait Fund for Arab Economic Development, Hamad AL-Omar, and Secretary, Ministry of Finance, Dr. R.H.S.  Samaratunga sign the agreement.
Deputy Director General, Kuwait Fund for Arab Economic Development, Hamad AL-Omar, and Secretary, Ministry of Finance, Dr. R.H.S. Samaratunga sign the agreement.

The Kaluganga development project is being implemented by the Ministry of Mahaweli Development and Environment with the financial assistance of Saudi Fund for Development (SFD), Kuwait Fund for Arab Economic Development (KFAD) and OPEC Fund for International Development (OFID).

The proposed Kaluganga reservoir will have a capacity of 265 million cubic meters (MCM) of water and will divert 100 MCM annually to the Moragahakanda Reservoir.

It has been identified that the financial assistance received from the above lenders are not adequate to complete the project as the cost of the project has been increased during the project implementation due to various reasons including unforeseen geological conditions in the foundations and design revisions. KAFAD agreed to provide a supplementary loan of KD 5 million (approximately US$ 16.5 million) to partly finance the funding shortfall, . This loan is provided at an interest rate of 1.5% per annum with a repayment period 22 years.

The Kuwait Fund for Arab Economic Development has already provided KD 10 million for this project in 2009. The OFID has also already agreed to provide an additional loan of US$ 18 million. The signing of the agreement took place recently at the office of KFAD in Kuwait. Hamad AL-Omar, Deputy Director General signed the agreement on behalf of the Kuwait Fund for Arab Economic Development while Dr. R.H.S. Samaratunga, Secretary, Ministry of Finance signed on behalf of the Government.

 

 

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