🇱🇰 Cabinet Approves US$ 60 Mn OPEC Fund Loan for Mahaweli Water Project

• Project Scope: Cabinet approved a loan agreement with the OPEC Fund for International Development (OFID) for Phase 2 of the Mahaweli Water Security Investment Program (MWSIP). • Funding Breakdown: • Total Phase 2 Cost: US$ 536.5 Mn • OPEC Fund Facility: US$ 60 Mn (provided in two components of US$ 48 Mn and US$ 12 Mn) • Asian Development Bank (ADB): US$ 200 Mn (already committed) • Key Infrastructure Works: • Excavation of the remaining ~7 km section of the main tunnel. • Construction of 68 km of open/covered canals, conduits, and short tunnels. • An 8 km canal section for the Ellapothana Irrigation Project. • Setup of 13 pressurized distribution networks for commercial farming. • Strategic Economic Impact: Focuses on boosting agriculture & commercial farming, enhancing national food security in the Dry Zone, strengthening water resource management, improving climate resilience, and alleviating poverty through climate-resilient value chains and expanded financial services for farmers.