Feb 15, Colombo: Sri Lanka has entered into an agreement with the Hungarian Export - Import Bank (Hungarian Exim Bank) to obtain a US$ 46.7 million (Euro 35 million) loan to rehabilitate the Labugama and Kalatuwawa Water Treatment Plants.

The two plants operated by Sri Lanka's National Water Supply and Drainage Board distribute a total of 97,000 cubic meters of water per day to most of the residents living in the Colombo Municipal Council area and suburbs.

Under the project, the water treatment of the Labugama and Kalatuwawa water treatments plants, constructed in 1886 and 1957 respectively, will be transformed into high-tech process which improves the water quality significantly.

The production capacity of Labugama and Kalatuwawa plants would also be increased from 45,000m3/day to 60,000m3/day and 52, 000m3/day to 90,000m3/day respectively.

Rapid growth of population including the daytime population in Colombo has resulted in an increase in water demand.

Raw water quality and deterioration of plants, especially sand build-up in the filters, have resulted in reduced production capacity and efficiency of the two plants while the demand has increased.

The total population of 700,000 in the areas of Colombo Municipal Council and the areas of Kolonnawa, Ja-Ela, Maharagama, Homagama, Pannipitiya, Piliyandala, Mattegoda and Biyagama will be benefitted from the project.

The National Water Supply and Drainage Board will implement the project under the supervision of the Ministry of Water Supply and Drainage and the project is expected to be completed in early 2015.

Secretary, Ministry of Finance and Planning Dr. P.B. Jayasundera on behalf of the government and Deputy Chief Executive Officer Dr. Viktor Nagy, and Chief Expert Dr. Szilvia Némedi-Varga, on behalf of Hungarian Exim Bank signed the loan agreements the Ministry of Finance and Planning in Colombo.