Monday, May 12, 2025
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Urban Development Lending Agencies cancel funding for Kandy water project

Urban Development Lending Agencies cancelled loan facilities for reconstruction of Gatambe Water Treatment Plant.

The contract had been awarded for Rs.899 million and subsequently, the Procurement Appeal Committee had decided to invite bids again due to issues arisen on eligibility and qualifications of the contractor.

Under these circumstances, the financial assistance provided for this function had been cancelled by the lending agency.

As such, the purpose of cleaning of this Gatambe Water Treatment Plant had been discontinued.

An amount of US$ 4.26 million equivalent to Rs.634.5 million had been retained in the Special Dollar Account of the Project over a period of 6 months due to less progress of the Project and weak forecasting made on financial requirements.

Water Treatment Plant (WTP) at Gatambe is the KMC’s main water purification unit situated 200 m from Gatembe junction along the left side of the Sirimavo Bandaranayake Mawatha.

This has been established in 1956 and has been undergone rehabilitation from time to time. The present capacity of the WTP is 35,000 cubic meters.

The proposed development project consists of two components i.e. laying a transmission line from Water Treatment Plant at Gatambe to Heerassagala Junction through the railway crossing and then continuing the transmission line to Heerassagala lower reservoir first and from there to Heerassagala middle reservoir.

(LI)