Cabinet has approved entering into an agreement with the OPEC Fund for International Development to obtain US$60 million for the second phase of the Mahaweli Water Security Investment Programme.

The financing consists of two loan components of US$48 million and US$12 million.

The second phase has an estimated total cost of US$536.5 million. According to the Cabinet statement, the Asian Development Bank has already agreed to provide US$200 million, with financing being sought from other development partners through a co-financing arrangement.

Planned construction includes completing the remaining section of the main tunnel route, including approximately seven kilometres of tunnelling and associated finishing work.

Other works include approximately 68 kilometres of open and covered canals, aqueducts and smaller tunnels, together with an approximately eight-kilometre section of the Ellepothana irrigation canal.

The programme also provides for infrastructure serving around 13 irrigation distribution zones to support high-value and field crops.

Additional measures aim to introduce climate-resilient agricultural practices and improve farmers’ access to financial and agricultural business services.

The President submitted the financing proposal as Minister of Finance, Planning and Economic Development.