OPEC Fund loans US$ 16 mn for hydro development project

The government has concluded an agreement for a US$ 16 million loan from the OPEC Fund for International Development to be utilized for the Moragahakanda-Kaluganga development project, Information Minister Anura Yapa said.
Yapa told the Island Financial Review that the Cabinet paper in this regard had already been finalised.
This project aims at building two reservoirs one at Moragahakanda and the other across the Kaluganga, in a bid to provide irrigation for farming, hydro power electricity generation and also boost inland fisheries.
According to the Mahaweli Authority the specifications of the two reservoirs are as follows:
The Moragahakanda Reservoir consists of a roller compacted concrete main dam and two rock fill saddle dams at height of 65 metres with a capacity to store 521 million cubic metres of water.
The Kaluganga Reservoir consists of a rock filled main dam and two saddle dams, one rock fill and the other earth at a height of 67 metres. Storage capacity is estimated at 144 million cubic metres with transfer tunnels connecting it with Moragahakanda.
The total cost of both projects is estimated at US$ 382 million, according to the Mahaweli Authority.
The Kuwait Fund for Arab Economic Development is to loan Sri Lanka US$ 37 million for the Kaluganga development project while the Saudi Fund for Development is offering US$ 46 million with the balance to be borne by the government.
The US$ 16 million from the OPEC Fund will have an interest rate of 3.2 percent and a service charge of 1.0 percent. This loan is repayable in 20 years after grace period of five years.
As of December 17, 2009 the OPEC Fund had approved project loans amounting to US$ 80.5 million. Of this US$ 21 million was granted to the agriculture sector, US$ 20.1 million to the energy sector, US$ 16.5 million to transportation, US$ 13.9 million to education and US$ 9 million to other sectors. (News - the Island)