Treasury Funded Water Supply Projects
PROJECT OVERVIEW
The Anamaduwa Integrated Water Supply Project (AIWSP) aims to enhance access to safe and reliable drinking water across the Anamaduwa, Kotawehera, Nawagaththegama, and nearby divisions, benefiting approximately 81,741 residents through 16,350 new connections.
THE PROJECT SCOPE
The Plant & Design-Build contract was awarded to UTA SETTAPI ELLIPSE ANAMADUWA (Spain) on November 5, 2014, with the contract commencing on February 7, 2017, for a duration of 36 months plus a 3-month O&M period.
- Construction of a new intake at Inginimitiya Reservoir (12,500 m³/day capacity).
- Establishment of a fully automated water treatment plant (11,000 m³/day).
- 61 km clear water transmission main, four elevated towers (capacities: 1,500 m³, 1,000 m³, 300 m³, and 300 m³), 328 km distribution network to serve target areas.
FINANCIAL DETAIL
Funding Source | Contribution % | Amount |
Instituto de Crédito Oficial (ICO), Spain | 70% | Rs. 4,633.03 million |
Hatton National Bank PLC (HNB), Sri Lanka | 30% | Rs. 2,050.24 million |
Government of Sri Lanka (GOSL) | Local Contribution | Rs. 1,941.90 million |
Total Project Cost |
| LKR 8,625.17 million |
THE COVERAGE AREA OF ANAMADUWA INTEGRATED WATER SUPPLY PROJECT
WATER DEMAND ANAMADUWA INTEGRATED WATER SUPPLY PROJECT
Item | 2009 | 2015 | 2020 | 2025 | 2030 | 2035 |
Population Served in Phase 1 | 61,497 | 65,674 | 69,368 | 73,270 | 77,390 | 81,741 |
Domestic Water Demand / (m3/d) | 6,150 | 6,567 | 6,937 | 7,327 | 7,739 | 8,174 |
5% Non Domestic Demand / (m3/d) | 308 | 328 | 347 | 366 | 387 | 409 |
Provision for NRW 20%/ (m3/d) | 1,615 | 1,724 | 1,821 | 1,923 | 2,032 | 2,146 |
Demand Phase 1 (m3/d) | 8,073 | 8,619 | 9,105 | 9,616 | 10,158 | 10,729 |
CONTRACT TERMINATION
Project implementation was severely affected by the 2022 economic crisis and the suspension of foreign loan payments, leading to the halt of funding from ICO Bank (Spain) and HNB (Sri Lanka) on May 7, 2022. Consequently, the contractor ceased operations in June 2022 and issued a termination notice on August 31, 2022.
Following legal review, the contract was officially terminated on May 26, 2023, under Clause 15.2 of the General Conditions of Contract. The employer encashed the Advance Bond and assumed responsibility for critical project completion.
CURRENT STATUS
- At Termination: 75% physical and 64% financial progress (including advance payment).
- Post-Termination: The NWSDB prepared an estimate of LKR 9,488.03 million for the remaining work. Due to limited funds, only partial completion is being pursued using the encashed Advance Bond of LKR 933 million.
- By September 30, 2025, the project had achieved 79.03% physical progress and 64.51% financial progress.
- Future Plan: The remaining works are being outsourced to local contractors to expedite completion. The NWSDB Prepared total cost estimate of LKR 3,640.90 million for essential balance works for the minimum functioning of the project, and fund allocation has made for 2026 – 2028 under the capital budget.
Progress of the Project
Pipe Laying
Tower Construction
Water Treatment Plant (WTP)
Intake
The primary objective of Anuradhapura North Water Supply Project Phase 1 is to ensure the provision of safe drinking water to the residents of the Rambewa and Medawachchiya DS divisions in the Anuradhapura district, an area where Chronic Kidney Disease (CKDu) is highly prevalent. Approximately 115,900 people in the region will benefit from the project, which includes the establishment of approximately 25,000 new house connections.
This project involves the creation of a water supply infrastructure, which encompasses a 9,400m3/d water treatment plant, three ground reservoirs with capacities of 1,500m3, 1,000m3, and 500m3, and four elevated water towers with capacities of 2,000m3, 1,000m3, 750m3, and 250m3. It also incorporates supply and laying of 89km of HDPE transmission main pipelines, 163km of HDPE distribution main pipelines, a 330km uPVC distribution sub-system, along with the construction of office buildings, quarters, and the implementation of mechanical and electrical works.
The project is structured into seven contract packages, denoted as Lot A, Lot B, Lot C1, Lot C2, Lot C3, Lot D1, and Lot D2. Lot A encompasses the water treatment plant and all related structures, including mechanical and electrical works. Lot B is responsible for the installation of transmission and distribution main pipelines, while Lot C focuses on the uPVC distribution sub-system. Lot D is allocated for the supply of operation and maintenance equipment and vehicles.
The project is funded by Japan International Cooperation Agency (JICA) and Government of Sri Lanka. JICA has provided JPY 5,166 million, while the Government of Sri Lanka has contributed LKR 2,789 million, in accordance with the Loan Agreement No: SL-P 110 signed between Japan International Cooperation Agency and Government of Sri Lanka on 14th March 2013.
The project is now almost completed with a 99.1% of physical progress. The all construction works have been handed over to NWSDB and operation of this scheme has already commenced by Operation and Maintenance section of NWSDB. Up to 31.07.2024, No. 3721 of new house connections have been given.
Title : Anuradhapura North Water Supply Project - Phase II
Funding Agency : JICA
The main objective of the ANWSP - Phase II is to provide safe drinking water and increase water supply coverage by constructing a water supply system in Padaviya, Horowpothana, Kahatagasdigiliya, Kebithigollewa, and part of Medawachchiya and Rambewa DSDs in Anuradhapura District where the people depend on unsafe ground water which causes dental, skeletal fluorosis and Chronic Kidney Disease (CKDu).
JICA and the Government of Sri Lanka (GoSL) have signed a loan agreement amounting to JPY 23,137 million for ANWSP – Phase II, with the GoSL contributing Rs. 4,819 million to the project.
The project components are;
Intake (Yan Oya Reservoir) | Civil 34,800 m3/day, M&E 17,400m3/day |
WTP (Wahalkada) | Stage I = 16,500 m3/day Stage II = 16,500 m3/day Full Capacity = 33,000 m3/day |
Number of Ground Reservoirs | 10 |
Number of Elevated Water Towers | 11 |
Raw Water Line | 600mm DI PN16, 3.277 km |
Transmission Lines | 148 km |
Distribution Lines | 1053 km |
Additionally, the construction of a 250 m3 elevated tower, and supplying and laying of approximately 4km of transmission lines and 422.6 km distribution lines for the ANWSP Phase I bowser supply areas and isolated areas, is also included.
The overall physical and financial progress of the project as of September 30, 2025, is 13.14% and 1.59% respectively.
The Project is divided into 12 packages and Progress as at September 30, 2025, is mentioned below;
No. | Component | Main Activities | Current Status | Progress | Financial Progress |
1 | Consultancy Contract Design and Bidding Assistance | Designing of WTP, Intake, Reservoirs, Water Towers, Transmission and Distribution Lines and Procurement Assistance | Detail design has been completed and currently in the bidding assistance stage | 98.7% | 82% |
2 | Lot D1 | Supplying of 2 nos Double cabs | Completed | 100% | 100% |
Other major packages are in the procurement stage.
No. | Component | Main Activities | Current Status | Procurement Progress | |
1 | Lot A | Construction of Intake, Raw water main, WTP, Reservoirs, Water Towers | Bid was called on 20.04.2022. Out of 10 pre-qualified bidders, 7 have purchased the bidding documents. Closing of bid was extended indefinitely due to the project funding issues in April 2022. Addendum No.01 was submitted for SHLPC approval. | 74% | |
2 | Lot B | Supplying & Laying of 148.22 km Transmission line and 191.5 km of Distribution lines | Bid Called on 18.08.2021 Bid Close on 27.10.2021. Technical Bid Evaluation Completed. Reply for JICA comments on Technical Bid Evaluation was submitted by TEC to SCAPC on 09.08.2022. SCAPC meeting for Technical Re-evaluation was held on 23.02.2023 and the report was submitted for JICA concurrence. As per the SHLPC decision, BEC report on EQC Evaluation is being prepred for SHLPC approval. | 93% | |
3 | Lot C1 | Supplying & Laying of 399.65 km of Distribution lines | Bid Called on 21.07.2021 Bid Close on 13.10.2021. JICA concurrence for Bid Evaluation received on 08.04.2022. As per the SHLPC decision, BEC Report on EQC Evaluation was submitted for SHLPC approval on 02.09.2025. | 97% | |
4 | Lot C2 | Supplying & Laying of 459.70 km of Distribution lines | Bid Called on 28.07.2021 Bid Close on 21.10.2021. JICA concurrence for Bid Evaluation received on 08.04.2022. As per the SHLPC decision, BEC Report on EQC Evaluation is being prepared for SHLPC approval on 02.09.2025. | 97% | |
5 | Lot C3 | Construction of 250 m3 elevated tower and Supplying & Laying of 420.6 km of Distribution lines (for Phase I area) | Bid Called on 17.11.2021. Bid Close on 26.01.2022. Bid evaluation was carried out by TEC and the report was submitted for SHLPC approval. As per the SHLPC decision, BEC Report on EQC Evaluation was submitted for SHLPC approval on 02.09.2025. | 77% | |
6 | Lot D1A | Supplying of 1 no Single Cab and 2 nos Crew Cabs | Bid Document is Prepared and Bid is Expected to Call in 2026. | 50% | |
7 | Lot D2 | Supplying of Lorry (1), Lorry with Jib crane (1) and mini backhoe (1) | Bid Document to be prepared | 0% | |
8 | Lot D3 | Supplying of Motor Bicycles (7) | Bid Document is Prepared and Bid is Expected to Call in 2026. | 50% | |
9 | Lot E | Supplying of Asphalt cutters (2), Tapping Machines (2), Compactors (2), vibrating Hammers (2), Portable Generators (3), water meter test bench (1), | Bid Document to be prepared | 0% | |
10 | Lot F | Consultancy Services for Construction Supervision | RFP Called on 14.07.2021. RFP Closed on 22.09.2021. JICA concurrence for technical evaluation received on 07.01.2022. Financial proposal was opened on 17.02.2022. CPCC meeting on Combined Evaluation was held on 28.04.2022. Negotiation meeting was held with first-ranked consultant on 20.01.2025 and the meeting minutes was submitted to JICA on 07.04.2025. JICA’s observations on meeting minutes were received on 09.05.2025. Final negotiation with the 1st rank consultant was held on 22.09.2025 and the final negotiation meeting minutes were submitted for JICA concurrence. | 91% |
The procurement process of obtaining approvals from the TECs, SCAPC, CPCC and JICA concurrences through ERD, as well as obtaining cabinet approval and final JICA concurrence for awarding the contracts, took longer than expected due to COVID-19 restrictions such as lockdown curfews, travel restrictions, limitation of work force etc. imposed by the Government of Sri Lanka during the year 2021, as well as the political and economic instability in the country.
Additionally, JICA temporarily suspended all disbursements and providing concurrences from April 2022, further delaying the awarding of contracts.
Following the resumption of disbursements and concurrences by JICA in September 2025, the SHLPC, at its meeting on May 20, 2025, decided to continue the remaining procurement activities of the project.
Accordion Content
Background of the Project
The distribution system of Colombo City was built more than 100 years ago during the colonial era and maintained by Colombo Municipal Council before it had been taken over by NWSDB in 2001. At present, the Non-Revenue Water in Colombo city is approximately 48% leading to poor water supply service due to leaking of pipes, lack of investments in past for rehabilitation works. In order to address the above issue NWSDB, together with Ministry of City Planning & Water Supply requested assistance from Asian Development Bank through Ministry of Finance. Accordingly, multi tranche financing facility (MFF) loan (ADB USD 300 Mn & GoSL USD 100 Mn) was arranged to address issues in both water supply & waste water.
Under the multi tranche loan, Tranche 1 & 2 had been allocated to Water Supply improvement works. Accordingly, Tranche 1 (USD 112 Mn) & Tranche 2 (USD 118 Mn) loans signed on 28th June 2013 & 03d June 2014 respectively.
Project Objectives
NRW Reduction & Water Supply Service Improvement Project
- NRW is reduced to 18% in year 2020
- Establishment of DMA based NRW monitoring and management system
- Service level improvement
- Rehabilitation and replacement, expansion of water supply distribution network in City
- Validation of the geographical information system (GIS) network maps, GIS based Assets
- Management
- City wide active leakage control using fully equipped NRW teams.
- Reinforcement of the O&M unit to Systematic NRW management.
- Capacity Development of NWSDB
NRW Reduction & Water Supply Service Improvement Project had been designed in such a way
that full rehabilitation of water supply networks in Colombo City can be done using four Civil works contractors. However, at present two System Rehabilitation Works contracts had been implemented, completed, and handed over to NWSDB O&M.
Project has established 78 DMAs in Colombo City, in addition NWSDB's capacity was improved through Construction of New Buildings for AE Office Mattakkuliya, NRW Building Maligakanda, New Training Centre at Thelawala.
The NRW of Colombo City has been reduced to 18% in March 2025.
Now the Project is winding up, Contractor's final payment applications are being assessed for payments, capitalization works in progress. However, Cabinet approval to be received to make payments to ICB-04 Contractor for the supply of O&M materials required by NWSDB.
The ADB loans were closed on 29th February 2024 and the balance payments to be made from GoSL counterpart funds.
This Project is to improve drinking water supply and sanitation requirements identified in 2005/2006 and the Government signed a loan agreement in 2011 with the total project cost of 164.04 Mn USD with the intention to provide the water supply to 300,000 people in 195 GN Divisions of Jaffna city, suburbs and several townships in the Jaffna Peninsula and Kilinochchi. The water source was initially identified as Iranaimadu tank augmentation and subsequently the Thiruvaiaru lift irrigation was improved. Due to the farmers’ concerns, the project was restructured to provide the water with the development of Sea Water Reverse Osmosis Desalination (SWRO) plant at Thalaiyadi to produce 24,000 m3/day capacity of safe drinking water and the total project cost was revised to 266 Mn USD for the same beneficiaries of the Project.
The Provincial Irrigation Department had limited the drinking water supply facilities to Kilinochchi District only from the augmented Iranaimadu tank. The sewerage component of the project was withdrawn (48 Mn USD) by the funding agency in 2013.
At this juncture, this project has attained high priority and the SWRO contract was awarded to M/s. Suez International in January 2021. Its design work was completed and construction works are ongoing. Its overall physical progress was 87% and financial progress was 76% as in December, 2023.
The Pipe laying of Jaffna City Distribution Networks is ongoing. Physical progress was 72.3% and financial progress was 55% and due to unprecedented situation of the Country in the past few years, the progress (191km out of 269km) of the pipe laying works is delayed.
20 Nos. of Elevated Water Towers were completed and 6 Nos. of them were handed over to O&M Jaffna. Treated Water Transmission Main pumping line of 194 km was completed out of 195 km. In addition, 572 km of Distribution Network Pipeline was completed out of 700 km. Among them 50 km of Island Distribution Network (Nainativu, Analaitivu, Eluvaitivu & Mandaitivu) was handed over to O&M Jaffna.
Even though SWRO Plant’s commissioning will be on second quarter of 2024, JKWSSP had made arrangement to provide drinking water to households through the 3,590 new house connections facilitated by the O&M, Jaffna from the available water resources in Jaffna as well as in Kilinochchi Districts. Approximately, 15,000 numbers of general public are benefitting from the project as of December,2023.
The overall Physical and Financial progress of JKWSSP achieved at the end of 2023 were 84.4% and 81% respectively. The project shall be completed by June, 2025 and the safe drinking water will be supplied to the public.
In order to meet the rapid increase of water demand in Colombo and Kalutara districts, the Government of Sri Lanka (GOSL) with the assistance from JICA, formulated stage development plans to develop water supply facilities by Kaluganga Water Supply System (KGWSS) by three phases. The phase 1 is already completed and it provides 120,000 m3/day of water quantity to the system. This project (Kaluganga Water Supply Expansion Project -1) is proposed to implement under phase 2 and it is suggested to provide 140,000 m3/day of water quantity to improve present water demand in Colombo and Kalutara district.
Basic Details :
Financial Details :
The objectives/ benefits of the project are:
- Increase in the water supply coverage and improve the existing system.
- Improve the reliability in the transmission system and distribution network.
- Improvement of health and socio-economic conditions of the inhabitants within the project area.
- Overall improvement to the infrastructure facilities for potential developments.
- Expansion of domestic and non-domestic settlements associated with more job opportunities.
- Improvements in sanitary facilities due to availability of water supply facilities.
JICA is the funding agency of the project with a loan amount of JPY 31,810 Mn under JICA loan SLP-117 while government of Sri Lanka has committed SL Rs. 10,282 Mn as counterpart funds. The effective date of the JICA loan is 22 Aug. 2017. The project activities were physically started on 04th December 2020 and scheduled to complete within 65 months from the date of commencement.
The project covers 654 GND’s in Colombo and Kalutara districts in Kesbewa, Padukka, Moratuwa, Homagama, Rathmalana, Dehiwala, Bandaragma, Bulathsinghala, Ingiriya, Panadura, Kalutara, Horana, Madurawala and Millaniya Divisional Secretariats.
Presently Kandana WTP operates at nearly 140,000 m3/day capacity while its design capacity is only 120,000 m3/day and it is proposed to provide water for Millawa prison complex and Moragahahena city development under this project.
Also, it is proposed to feed more water to Colombo city area especially for Port city development by feeding more areas in Dehiwala under this Kaluganga Project which are presently feed by Ambatale WTP.
Many of the existing transmission mains and distribution networks in the Dehiwala and Moratuwa areas were installed 50 to 100 years ago. Because of water leakages from these old deteriorated pipelines, the percentage of non-revenue water (NRW %) in these areas, is around 40%, which exceeds the national average of NRW%. Hence, it becomes essential to ensure NRW reduction in order to increase water supply efficiency in the region.
Coverage area of the project
Water Demand in Kaluganga Water Supply System
Kandy North Pathadumbara Integrated Water Supply Project covers six (6) divisional secretariats. Pathadumbara, Akurana, Harispaththuwa, Pujapitiya, Kandy Four Gravets & Thumpane in Kandy District and beneficiary populations are 700,000 by increasing the production capacity of existing WTP from 50,000 m3/day to 100,000 m3/day.
Funding sources are Exim Bank of China and GOSL. Contract was awarded to M/s Sinohydro Corporation Ltd. for the contract sum of MUSD 194.83 plus MLKR 8,356.25 plus GOSL amount of MLKR 7,313.94. Contract was commenced on 21st August 2019 and was originally scheduled to complete by 20th August, 2022. Extension has been granted up to 31st March 2025.
KNPIWSP consists of Improvements of WTP and Intake, 27 Service reservoirs, 18 nos. of new Pump houses, supply and laying 570 km distribution & 83km transmission lines and provisions for Rural Water Supply and NRW Prevention and Reduction Programme.
Ruwanwella Water Supply Project (RWSP) is a major water sector development project undertaken by the National Water Supply & Drainage Board (NWSDB) with the financial assistance of EDCF (Exim Bank), Korea and Government of Sri Lanka (GOSL). The main contractor is M/S Kolon Global Corporation.
Ruwanwella water supply project has been designed to cater about 36,000 population in Ruwanwella and Bulathkohupitiya and Yatiyantota divisional secretariats. The contract for project implementation has been awarded to M/S Kolon Global Corporation, a leading Korea Contractor.
The project was commenced on 31st December 2019 and the original completion date of the project is 28th March 2022. At the moment, project completion date was extended up to 28th February 2025.
Objective of the Project
Provide safe drinking water supply 36,000 to population of in Ruwanwella (11 GNDS), Bulathkohupitiya ( 08GNDS) and Yatiyantota (02 GNDS) Divisional Secretariat Divisions.
Coverage Area
Ruwanwella water supply project covering 21 GN divisions within\ Ruwanwella, Bulathkohupitiya and Yatiyantota DS divisions in Kegalle district of Sabaragamuwa province.
DS Divisions | Total GNDs | Covered GNDs |
Ruwanwella | 38 | 11 |
Bulathkohupitiya | 32 | 8 |
Yatiyantota | 7 | 2 |
Total | 21 | |
Project Scope
Intake : Capacity – 4,400 m3/day at Moraliya
Raw water transmission : 0.3 km , 350 Æ DI
Water treatment plant : Capacity – 4,000 m3/day at Moraliya Estate land.
Storage structures (New) :
Reservoir at Mahalla - 700 m3 | Reservoir at Panapitiya - 300 m3 |
Reservoir at Imbulana - 350 m3 | Reservoir at Kannanthota Upper - 25 m3 |
Reservoir at Kannanthota Lower - 700 m3 |
Background of the Project
The Eppawala, Giribawa, Rajanganaya and Nochchiyagama Integrated Water Supply Project – Stage I is a priority initiative of the Government of Sri Lanka, implemented by the National Water Supply and Drainage Board (NWSDB) under the Ministry of Housing, Construction and Water Supply recognizing the continuing health risks posed by chronic kidney disease of uncertain etiology (CKDu), which has been linked to poor-quality groundwater and the lack of access to safe drinking water in the affected regions.
The project was recommended by the Department of National Planning on 30th June 2025 via NP/IC/WS/PP/16/02. The Cabinet of Ministers approved the implementation of the Project through the Cabinet Decision No. MF/NB/CM/203/ 2025/123/11 dated 14th September 2025, to be implemented entirely using Government Consolidated Funds under the National Capital Budget.
The total estimated project cost is LKR 32.21 billion, and the implementation is planned during 2025 to 2029.
Project Objectives
The project has been formulated to provide safe drinking water to approximately 139,776 people by the year 2055, covering 110 Grama Niladhari Divisions across seven Divisional Secretariat Divisions in the Anuradhapura and Kurunegala Districts. These areas are significantly affected by Chronic Kidney Disease of unknown etiology (CKDu). Accordingly, the project objectives are as follows:
- To provide a safe and reliable pipe-borne water supply to households in selected Divisional Secretariat Divisions of the Anuradhapura and Kurunegala Districts.
- To utilize existing water sources and treatment plants in order to minimize the need for new capital investments.
- To increase water supply coverage in underserved rural areas.
- To reduce dependence on unsafe groundwater sources, which are linked to the prevalence of CKDu.
- To ensure sustainable operation and maintenance by integrating the system with existing NWSDB regional infrastructure
Coverage Area
The project spans 110 Grama Niladhari Divisions (GNDs) in seven (7) Divisional Secretariat Divisions across two districts as follows:
- Anuradhapura District (North Central Province):
- Rajanganaya – 21 GNDs
- Nochchiyagama – 16 GNDs
- Thalawa – 16 GNDs
- Galnewa – 09 GNDs
- Ipalogama – 19 GNDs
- Kurunegala District (North Western Province):
- Giribawa – 21 GNDs
- Galgamuwa – 08 GNDs
In the Anuradhapura District, water supply coverage through NWSDB is expected to rise from 63.9% to 76.0%, while in the Kurunegala District, coverage is expected to from 20.59% to 22.11%.
Project Scope
The Major components of the Stage I of the project are as follows,
- Construction of a new 10,000 m³/day Water Treatment Plant at Sirimapura, capacity improvement of 4,500 m³/day at Kalawewa, and augmentation of 4,000 m³/day at Thambuthegama;
- Construction of a 5,500 m DI 500 mm dia. raw water transmission line and a 55 km treated water transmission system;
- Construction of six service reservoirs with a total capacity of 8,000 m³ at Mahailluppallama, Eppawala, Sirimapura, Nallachchiya, Giribawa, and Nochchiyagama
- Development of an approximately 1,100 km distribution network covering five distribution zones namely, Eppawala Mahailluppalama, Giribawa, Nochchiyagama and Rajanganaya; and
- Establishment of the necessary operational buildings and facilities-05 Nrs
Funding and Implementation
The total estimated project cost is LKR 32.21 billion, funded entirely by the Government of Sri Lanka through consolidated funds. The approved financial plan is as follows:
Budgetary Allocation – LKR 32.21 billion | ||||
2025 | 2026 | 2027 | 2028 | 2029 |
LKR 1.0 billion | LKR 3.0 billion | LKR 10.0 billion | LKR 10.0 billion | LKR 8.21 billion |
Current Status
Project initiation activities are presently in progress, and the necessary approvals and recommendations for the Project are being granted. At Present the following approvals / recommendations have been granted.
Project Approvals (Policy and Financial Level Approvals)
- The Project Appraisal Committee approval was granted in principle to implement the Project.
- The Board of Director’s Approval was granted to commence the Project by the Board Decision No. S/07 dated 28th May 2025.
- The National Planning Department recommendation was grated on 30th June 2025 through Letter ref. no. NP /IC/ WS/PP/16/02.
- The Cabinet Approval was granted for implementation of the Project on 08th October 2025 by the Cabinet Decision no. අමප/25/1681/814/087.
Statutory and regulatory clearances from relevant authorities.
- The approval of the Irrigation Department for the Intake construction at Angamuwa Tank and establishment of temporary facilities at intake site was granted on 01st October 2021 by the letter ref. DI/ WM/DWS/Anu/001/2019.
- A Memorandum of Understanding was signed between the Irrigation Department, Mahaweli Authority of Sri Lanka and the National Water Supply and Drainage Board for Extracting Water from Angamuwa Reservoir for Eppawala, Rajanganaya, Giribawa & Nochchiyagama Water Supply Project on 25th November 2021.
Board Borrowed Water Supply Projects
General
Aluthgama Mathugama Agalawatta integrated water supply project Is A Major Water Sector Development Project Undertaken by the National Water Supply & Drainage Board (NWSDB) with the assistance of Export Import Bank of India (EXIM), Bank of Ceylon (BOC) and Government of Sri Lanka (GOSL).
Objective of the Project
To provide drinking water supply facility to Mathugama, Dodangoda, Kalutara, Beruwala, Agalawatta and Madurawela DS Divisional areas by Augmentation of existing Kethhena Water Treatment Plant.
To mitigate the current Salinity Intrusion issue by constructing New Intake at Kolemodara
It is expected to provide safe drinking water to 300,000 people within 269 Gramer Niladari Divisions (GND) Mathugama, Dodangoda, Kalutara, Beruwala, Agalawatta and Madurawela Divisional Secretariat (DS) areas.
The Original completion date of the project was 14th May 2020. However, the project faced delays due to the COVID-19 pandemic, frequent heavy rainfall, inundation of Raw Water Intakes, shortages of local construction materials, imported materials, fuel and the suspension of funding by the EXIM Bank of India as a result, the project is expected to be completed by December 2025, with aiming 60,000 number (32,000 New connections plus 28,000 service level improvements) of water supply connections by 2030.
The number of GNDs which are covering in each DSD is as follows
DS Divisions | No of Covered GND’S |
Mathugama | 58 |
Dodangoda | 45 |
Kalutara | 39 |
Beruwala | 82 |
Agalawatta | 34 |
Madurawala | 11 |
Total | 269 |
Coverage Area
Financing
The project cost of USD 194,000,000 is funded as follows;
Loan by EXIM Bank of India (85%) - USD 164,900,000.00
Loan by BOC (15%) - USD 29,100,000.00
General Treasury - Rs. 3,707.00 Mn
The main contractor is M/s Ion Exchange (India) Ltd.
Funds Committed by Government of Sri Lanka (GOSL)
Project Scope:
- New intake at Kolemodara having capacity 78,500 m3 /d
- 13,500 m3/d (3 MGD) New WTP & Existing WTP Refurbishment at Kethhena
- Augmentation of Existing Kethhena Intake (Total capacity 74,250 m3 /d)
- Ground Reservoirs - Dodangoda 1500 m3 and Dahampahanagama 500m3
- 4 Nos. Water Towers (Neboda 600 m3, Agalawatta 600 m3, Mathugama Kanda 225 m3 and Mathugama 1000 m3)
- Transmissions mains – (58 km, 300 – 800 mm dia. DI) (Raw Water TM, Kolemodara – Kethhena, Old Intake – Kethhena, Clear Water TM, Kethhena – Dodangoda, Dodangoda – Neboda, Neboda – Mathugama, Mathugama – Agalawatta, Mathugama - Mathugamakanda and Beruwala to Darga Town)
- Distribution System (260 km, 90 – 300 mm dia. DI/PVC) (Kalutara, Beruwala, Dodangoda, Mathugama, Agalawatta & Madurawala)
- Pump Houses, Plant Buildings, Offices & Staff Quarters
- Supply & Installation of New Pumps and Diesel Generator at Beruwala
Project Physical Progress : 98.70% as at 30th September 2025
Project financial Progress : 91.85% (without GOSL Components) as at 30th September 2025
No of Connection given 8,102
New Connections | 6,945 |
Service Level Improvement | 1,157 |
Project Description
Gampaha Attanagalla and Minuwangoda Integrated Water Supply Scheme commenced on 20th February 2017 with a scheduled completion date of 19th February 2020. The contract period has been extended several times, with the latest extension up to 31st December 2024. The Project covers 443 Grama Niladhari Divisions in Gampaha, Attanagalla and Minuwangoda Divisional Secretariat divisions as a whole and part of Mahara and Mirigama Divisional Secretariat Divisions in Gampaha District. It is expected to provide 88,000 new connections and to improve the service of 22000 existing connections in Gampaha District.
The project includes an Impounding Reservoir, Intake with a Capacity of 85000m3/day, a Treatment Plant with a Capacity of 54,000 Cum/day, a 10,000 m3 Capacity Ground Reservoir, 5 water towers of capacity 1,500cum/day each and 504 km of distribution and 85.6 km of transmission pipelines.
Present Status of Project Components
Main Contractor – M/s China Machinery Engineering Corporation
54000 cum/day water treatment plant, 85000 cum/day intake, and Offices and Quarters of the project are the main components of the GAMIWSS, Designed and Built by the main Contractor.
Low load commission of the water treatment plant for a capacity of 5,000m3/day was done with a temporary intake and connections are provided in Pasyala and Attanagalla areas. Intake construction completed therefore, the main contractor’s scope is almost completed.
IDW Works
With the Addendum 1 to the main contract agreement (EPC Contract), the employer (NWSDB) has undertaken to accurate the below works named as indirect works (IDW).
Basnagoda Impounding Reservoir – Department of Irrigation – Contractor, M/s Sinohydro Corporation Limited.
A dam of 136m long and 25 meters high is to be constructed to create the Basnagoda Reservoir inundating an area of 117 hectares to contain 5.5 million cubic meters of water. This will be the water source of Gampaha, Attanagalla & Minuwangoda Integrated Water Supply Scheme. At present progress is 82.0%. The balance work is expected to be completed by end of June 2024.
High Level Reservoir – Contractor, M/s Sierra Construction Limited
10,000 cum high level ground reservoir to store clear water transmitted from Water Treatment Plant for distribution to five new Elevated Water Towers and other existing Water Towers in vicinity is 100% completed.
Attanagalla Transmission and Distribution System - Contractor, M/s Sierra & KDAW JV
Attanagalla Contract package was the first part of water distribution area consisting of 20 km length of transmission mains and 105 km distribution mains 100% of which have been already completed.
Nittambuwa Transmission and Distribution System - Contractor, M/s CEPL – JSCPL Joint Venture
It includes 1500cum Water Storage Tank, Raw Water main from impounding reservoir to treatment plant and 25km long transmission mains of the Nittambuwa package. At present 21.65km in transmission completed and tower progress is 73%.
Naiwala Transmission and Distribution System - Contractor, M/s CEPL – PIL Joint Venture Naiwala contract package comprises of 1500cum water storage tank and 13.95km long transmission and 137.47km long distribution. Transmission 13.85km & distribution 137.51km are completed (without flushing and disinfection) Progress of the elevated tower is 100%. Total progress of the works is 96%
Balummahara Transmission and Distribution System - Contractor, M/s Sanken Construction (Pvt) Ltd.
The contract package of Balummahara consists of 1500 cum water storage tank, 3.2km transmission pipe lines, and 83.02km distribution lines. Transmission 3.19km & distribution 83.02km are completed. Progress of the elevated tower is 100%. Total progress of the works is 99%.
Pasyala Transmission and Distribution System- Contractor, M/s Sanken Construction (Pvt) Ltd.
The contract comprises 1500 cum water storage tank, 1.76km long transmission mains and 72.26km long distribution mains. Transmission 1.76km & distribution 59.44km are completed. The Progress of the elevated tower is 96.80%. (Photograph 9)
Minuwangoda Transmission and Distribution System- Contractor, M/s Finite Lanka (Pvt) Ltd
It consists of 1500cum water storage tank, 4.72km long transmission lines and 87.47km long distribution lines. Transmission 4.67km & distribution 72.71km are completed. The Progress of the elevated tower is 100%.
Gampaha Transmission System - Contractor, M/S Squire Mech Engineering (Pvt) Ltd
It includes only transmission pipe lines of 12.17 km and 7.06km is completed. It is connected to Balummahara distribution system. The contract was awarded in September 2021 and Progress of the contract is very low (41.37%)
Issues
Fund disbursement stopped from January 2022 and contractor’s payments were settled utilizing disbursed funds from project (IDW) up to December 2023. Then Board Funds were used to settle contractor’s payments up to April 2024. Since the Board Funds allocation exceeded, a Cabinet Memorandum was submitted to obtained funds (LKR 4.2 billion) for balance works.
Photographs
Introduction
The Polgahawela, Pothuhera & Alawwa Integrated Water Supply Project is being implemented by the National Water Supply & Drainage Board (NWSDB) with financial assistance from the Exim Bank of India, the Bank of Ceylon, and the Government of Sri Lanka. The project was awarded to M/s Va Tech WABAG Ltd. of India as a lump-sum contract under the FIDIC Yellow Book 1999 for Design and Build Contracts, at a total project cost of USD 108 million. The project commenced on 1st July 2017 and was initially expected to be completed by 30th June 2020.
However, due to the force majeure conditions that prevailed in the country and the subsequent economic crisis, the project was severely affected and could not be completed as originally scheduled. The completion of the permanent works is now expected by the end of 2025.
On 19th December 2022, the Employer took over approximately 65% of the Permanent Works, including the Water Treatment Plant, Transmission Mains, and Distribution Zones in Polgahawela and Alawwa, thereby enabling the supply of pipe-borne water to residents in these zones.
Objective of the Project
The objective of the project is to provide potable and safe piped water to approximately 162,725 people through 38,000 new service connections, and to improve the service quality of 11,250 existing connections in 167 Grama Niladhari Divisions (GNDs) located within the Polgahawela, Alawwa, Kurunegala, Weerambugedara, and Mallawapitiya Divisional Secretariat Divisions (DSDs).
Coverage Area
The scope of the project is divided into the following key components:
- Construction of a 6 m high weir across the Ma Oya River
- Construction of an intake facility with a capacity of 31,000 m³/day at
- Construction of a Water Treatment Plant with a capacity of 29,000 m³/day
- Laying of 5 km of 700 mm diameter raw water transmission main
- Laying of 39 km of clear water transmission mains
- Laying of 57 km of distribution network
- Construction of six ground reservoirs (capacities: 50 m³, 175 m³, 500 m³, 800 m³, 1,500 m³, and 2,000 m³) and one elevated water tower (1,500 m³)
- Installation of electrical and mechanical systems
- Construction of institutional buildings and staff quarters (three institutional buildings and two quarters)
Funding Arrangement of the Contract
Foreign Component
The funding arrangement of project amounting to USD 108 Mn is funded as follows.
Loan by EXIM Bank of India (85%) - USD 91.8 Mn
(LKR 13,311 Mn @ 1USD = LKR 145.00)
Loan by BOC (15%) -USD 16.2 Mn
(LKR 2,349 Mn @ 1USD = LKR 145.00)
Local Component
General Treasury - Rs. 4,547.8 Mn
Total project cost - Rs. 20,207.80 Mn.
Present progresses of the Contract
The Physical progress of the Project as of 30th September 2025 is 94.7% and the financial progress is 93.29%.
Physical progress of the project as of 31st July 2024
No | Project Components | Progress(%) |
1 | Preliminary | 99.71 % |
2 | Weir at Karandana (1.6m-H, 100m -L) Embankment Protection – 480m | 93.62 % |
3 | Intake(Channel, Pump House, MCC, DG, Transformer Cubical buildings) | 94.87 % |
4 | Raw water transmission (700mm dia. & 1.5Km) | 100.00 % |
5 | Water Treatment Plant | 92.31 % |
6 | Clear Water Transmission - 38.6 Km | 99.00 % |
7 | Clear water storage reservoirs (6Reser &1Tower) | 90.52 % |
8 | Distribution System - (181.57 Km) | 75.00 % |
9 | Institutional Buildings –(3 Offices and 2 Staff Quarters) | 74.60 % |
10 | Electromechanical | 81.25 % |
11 | Ancillary work | 78.50 % |
Overall | 94.10 % |
Present Situation of the Contract
On 19th December 2022, the Employer took over 80% of the Permanent Works, including the water treatment plant, transmission mains, and distribution zones in Polgahawela and Alawwa. However, the Contractor suspended work on 1st September 2022 due to the Employer’s failure to make payments or provide financial assurances following the suspension of funds by the Exim Bank of India and the Bank of Ceylon. The total outstanding payment to the Contractor from July 2022 to 23rd July 2024 amounted to USD 4.503 million.
On 24th July 2024, the Contractor was paid LKR 1.0 bn with the receipt of LKR 1.0 bn from Treasury Funds following the Cabinet decision AMP/24/0874/611/017 dated 28th May 2024 aiming for the completion of the critical balance permanent works of the project.
Subsequently, the Contractor resumed the critical balance works of the project with effect from 25th July 2024 and the Construction works are ongoing.
Investment Plan
The project requires an additional LKR 3.1 billion, which includes the outstanding payment due, and the retention money owed to the contractor. This amount is necessary for the successful completion of all aspects of the project. Therefore, it is essential to implement a methodology for arranging the remaining LKR 3.1 billion. Until these funds are secured, the contract cannot be closed, even if the permanent work has been completed.
| Year 2024 (from 31.07.2024-31.12.2024) & 2025 |
Foreign Funds (Code 12) | 3,100 |
Local Funds (Code 17) | 100 |
Personal emoluments | 34 |
Total | 3,234 |
Project Progress Report 2024 and Investment plan 2025
Project Progress Report 2024
Project Name: Thambuttegama Water Supply project
Scope of the Project : To provide safe and reliable pipe borne water to 42 GNDS in Thambuttegama, Thalawa and Galnewa DS Divisions.
Project Duration: From 01st t July, 2018 to 31st December, 2024
Overall Physical & Financial Progress/Achievements of the project as at end of July 2024
Physical Progress – 86.10%
Financial Progress – 88.93%
Component wise Achievements of the project as at end of July 2023
| Component | Achievement % |
| Construction of 42,000 m3/day intake | 23.02 |
| Construction of 18,000 m3/day water treatment plant | 87.41 |
| Construction of 3 nos 1500 m3 water towers | 94.07 |
| Supply & laying of 12.7 km Raw water transmission main | 81.41 |
| Supply & laying of 20km treated water transmission main to towers | 97.70 |
| Supply & laying of 158km treated water distribution main to towers | 93.09 |
| Construction of Office, quarters and Other miscellaneous work | 96.32 |
General Comment
Completion of the project was delayed due to intake issues as a result of protest carried out by Rajanganaya Integrated Farmers Organization, and the COVID – 19 pandemic situations.
However, a new water source Angamuwa Reservoir was found and DCC approval obtained. Then the MOU was signed among NWSDB, ID and MASL for water extraction. Finally intake construction commenced in October, 2021.
The progress rate is hindered since April 2022 due to payment delays and contractor has given notice for suspension highlighting the same reason.
Current Major Issues / Challenges
- After 2 years suspension period contractor re - mobilizing at site following payment of all outstanding payments from GOSL funds. However, funds for balance work will only be available in 2025 as per the present cabinet decision. Therefore, funding for work performed during 2024 is an issue.
- Funding for construction of Aqueduct by Irrigation Department to be arranged as per signed MOU.
- Funding for feeder canal improvements by Mahaweli Authority of Sri Lanka to be arranged
- Contractual claims submitted by contractor amounting to USD 8,315,780.53. Need to be negotiated and settled.
Thambuttegama Water Supply Project: A Lifeline for Communities in Anuradhapura
The Thambuttegama Water Supply Project is a landmark infrastructure initiative undertaken by the National Water Supply and Drainage Board (NWSDB) under the policy direction of the Ministry of Urban Development, Construction and Housing. Designed to address longstanding issues related to the lack of safe drinking water in Sri Lanka’s dry zone, the project is part of the government's broader efforts to improve water accessibility, health outcomes, and regional equity in public service delivery.
The project was initially estimated at USD 120.6 million and is co-financed by the China Development Bank (CDB), Bank of Ceylon (BOC), and the Government of Sri Lanka (GOSL). Following Cabinet approval, NWSDB entered into formal loan agreements with both CDB and BOC to secure the necessary financing. The involvement of multiple financial partners underlines the strategic importance of the project, not only in terms of regional infrastructure but also within Sri Lanka’s national development priorities.
Project Scope and Objectives
At its core, the project aims to provide 25,000 new water connections and upgrade 5,000 existing connections, thereby delivering safe, reliable, and continuous piped water to an estimated 91,000 residents. The project serves communities across 26 Grama Niladhari Divisions in the Thambuttegama Divisional Secretariat, 12 divisions in Talawa, and 4 divisions in Galnewa, covering some of the most water-stressed regions of the North Central Province.
This intervention is expected to yield substantial public health benefits, especially in mitigating the impact of Chronic Kidney Disease of unknown etiology (CKDu)—a major health crisis affecting thousands in the region, largely attributed to contaminated groundwater. By replacing these unreliable water sources with treated piped water, the project aims to dramatically reduce the risk of waterborne diseases and improve the overall quality of life.
Challenges and the Change of Water Source
Despite its promise, the project faced significant challenges during implementation, particularly in relation to its water source. Although the Department of Irrigation approved the extraction of 44,000 m³/day from the Rajanganaya Reservoir, intense protests by local farmers’ organizations delayed the intake construction. Concerns over irrigation impacts and competing demands for agricultural water made stakeholder agreement difficult to achieve.
Several alternative water sources were investigated; however, each was deemed infeasible due to a combination of technical complexities, social opposition, environmental risks, and cost constraints. Eventually, a breakthrough was achieved with all relevant stakeholders—including the NWSDB, Mahaweli Authority of Sri Lanka (MASL), Department of Irrigation (ID), and the Farmers’ Organizations—agreeing to adopt the Angamuwa Reservoir as the project's new raw water source.
Major Infrastructure Components
The Thambuttegama Water Supply Project includes a wide range of integrated infrastructure systems:
- Construction of a 63,000 m³/day raw water intake at Angamuwa Reservoir
- 18,000 m³/day water treatment plant located at Thambuttegama
- 1,500 m³ ground-level reservoir for treated water storage
- Three elevated water towers (1,500 m³ each) at Kalundegama, Hurigaswewa, and Koonwewa
- 12.75 km ductile iron (600mm diameter) raw water transmission main
- 20 km of DI treated water transmission mains
- 158 km DI/PVC treated water distribution network, ensuring last-mile connectivity
- Construction of supporting facilities including OIC office, laboratory, workshop, staff quarters, stores, and other operational infrastructure
Together, these components are designed to create a modern and efficient water supply system, meeting current and future demand with resilience and reliability.
Financial Adjustments and Revised Funding Strategy
The financial framework of the project underwent several adjustments over time. The CDB loan availability was extended twice with Cabinet approval but ultimately expired. A third extension, proposed to secure continued foreign financing, was withdrawn following recommendations from financial and legal advisers engaged by the Government of Sri Lanka during its external public debt restructuring process.
In response to this development, the GOSL stepped in to fully fund the remaining work through domestic capital allocations. Budgetary provisions were secured under the 2025 capital investment programme, affirming the government’s commitment to completing the project despite external financing constraints. This shift reflects a growing emphasis on self-financed infrastructure development in the context of Sri Lanka’s current fiscal challenges.
Progress and Timeline
The construction officially commenced on 1st July 2018 and is being implemented by the CATIC–China Geo Engineering Joint Venture (JV) under the direct supervision of NWSDB. Due to Sri Lanka’s economic crisis and consequent payment delays, the contractor temporarily suspended work on 22nd May 2022.
Following the government’s decision to resume funding through domestic sources, construction recommenced in June 2024, and as of 30th September 2025, and the project has achieved 91% physical progress. Remaining works include testing and commissioning, finishing touches on ancillary buildings, and final integration of the network system which are expected to be completed in March 2026.
Looking Ahead
Once completed, the Thambuttegama Water Supply Project will stand as a model for regionally balanced infrastructure development, combining technical innovation, community engagement, and sustainable planning. It is expected not only to enhance living standards and public health but also to support economic productivity in agriculture, education, and small industries—building resilience and hope in a historically underserved region of Sri Lanka.
Water Source:
Angamuwa Reservoir
Intake Site:
Intake building
Water Treatment plant site:
Water treatment plant Arial view during initial construction stage
Inside high lift pump house
Lamella Crarifier
Tower sites:
1500 m3 capacity Konwewa Tower before painting work
1500 m3 capacity Hoorigaswewa Tower after finishing work
Pipe laying work:
Solama bridge crossing
Pipe laying work
Project Scope
Increase the level of service, service coverage & achieve effective & sustainable use of water in proposed service area in Matara District & a part of Hambantota District.
Project’s Purpose
The total production capacity of the Project is 60,000 m3/day. All the structures including pipe lines except Treatment have planned to be constructed to cater 60,000 m3/day but the treatment capacity under this stage will be 30,000 m3/day.
Figure 1: Schematic diagram of the Matara Stage IV Water Supply Project
The present service coverage of existing Matara - Mirissa integrated water supply scheme is 284,808 population and the new project estimated to cover 285,000 population in year 2046 in divisional secretary areas of Matara,Thihagoda, Devinuwara, Dickwella, Weligama, Welipitiya, Malimbada, Kamburupitiya,Kirinda-Puhulwella, Athuraliya, Beliatta & Tangalle.
Objectives
- Increase the service level of the present consumers
- Improve service levels of high elevated areas
- Reduction of NRW by replacing decade gravity and pumping transmission mains.
- Prevent salinity intrusion along Nilwala River.
Introduction
The Coverage Areas from this are Matara, Thihagoda, Devinuwara, Dickwella, Weligama, Welipitiya, Malimbada, Kamburupitiya, Kirinda-Puhulwella, Athuraliya, Beliatta & Tangalle. The present service coverage of existing Matara - Mirissa integrated water supply scheme is 284,808 population. The MS4 project estimated to cover 285,000 population in year 2046. All the structures including pipe lines except Treatment will be constructed to cater 60,000 m3/day. But the treatment capacity under this stage will be 30,000 m3/day. The total production capacity of the Project is 60,000 m3/day.
Figure 2: Details of Service area of the Matara Stage IV Water Supply Project
General details of the project are:
- Project Name : Matara Stage IV Project
- DS Divisional Secretariat : 12
- Grama Niladari Coverage : 372
- Service Coverage : 284,808 (Number of Beneficiaries existing)
- Proposed Service Coverage : 285,000 (Number of Beneficiaries under New MSIV Project in 2046)
- Total Beneficiaries in 2046 : 569,808
- Source : Nilvala River
- Intake capacity : 66,000m3/Day
- Treatment Plant capacity : 33,000 m3/day
- Raw water main : 300m(approximately)
- Transmission water main : 78 km(approximately)
- Distribution water main : 200 km(approximately)
Figure 3: Distribution pipe laying Zones of the Matara Stage IV Water Supply Project
Contract details of the project are:
The objective of this contract is to increase the Quality and service level of the existing system, provide the pipe born water service to new areas. The type of this contract was Design and Built for civil, mechanical, and electrical works. The consultant and contractor of the contract are M/s Cey Water Consultant as a Sub Contractor and Kolon Samsung C&T JV , Korea respectively. The sources of the funds for this contract were Rs.35 Bn National Development Bank (NDB) loan and Rs.4 Bn from GOSL.
This contract was commenced on 11.10.2017 and contract period is 36 months. Accordingly original completion date is 11.10.2020. This contract was extended due to Land issues (Delay to get right of access and possession to WTP Site) and scarcity of construction materials and unexpected price change due to prevailing situation in country and direct and indirect influences by the fuel shortage in the country. However, due to insufficient budgetary allocation of the contract causing contractor’s entitled payment of Price increase of escalation, dollar fluctuations, it has to be mutual termination on 31.01.2023 at the physical progress of 93.4%.
Financial details of this contract
Details of the Fund allocation to this contract are summarized below;
Figure 4: Financial details of the Matara Stage IV Water Supply Project
Local Bank Funded Water Supply Projects
Laggala New Town WSP has been implemented to facilitate safe drinking water to resettlement area and suburbs of the population displaced due to Moragahakanda – Kaluganga Development Project covering 16 Grama Niladari Divisions in Laggala Pallegama Divisional Secretariat in Matale District.
The beneficiaries will be 24,438 at the design horizon; year 2036. The Project Cost is Rs. million 4,496 and funded by Local Bank Fund (HNB/People’s Bank). Work commenced on 21.07.2016 and was expected to be completed by 20.07. 2018. The Contract period was extended up to 29.09.2024 for completion of work and thereafter the 90 days O&M Assistance Period up to 28.12.2024.
The water source is Kaluganga. The intake location was changed due to a public protest, and thus the routes of Raw Water Main (RWM) & Treated Water Mains (TWM), location of Water Treatment Plant (WTP) were changed. The revised scope includes Intake of capacity 4,250 cu.m/day, WTP of capacity 4,000 cu.m/day, 06 Nrs. Service Reservoirs (cu.m 50, 100, 150, 400, 600 & 1000), RWM, and TWM & Distribution System of approximate lengths 6.4km, 29 km & 190 km respectively and ancillary buildings, including Electro Mechanical installations.
Since the available funds will not be sufficient to cater the cost of Variations due to Scope Change, additional fund of Rs.500 Mn has been approved by the Cabinet of Ministers under CEDE-2024 fund. The Total Cost Estimate has been revised (Rs Mn 5,342.04) and submitted for Procurement Committee approval.
Due to delay in releasing payments by the funding bank (HNB) for more than one year since July 2019 a new loan agreement was signed with People’s Bank (PB) and the outstanding payments were released in August 2020. However, payments were delayed by the People’s Bank also from August 2022 to July 2023. Variations of work due to scope change as a result of intake location change, payment delays (HNB/PB), COVID 19 Pandemic, Foreign Currency issue, Government restrictions for importation of materials (HDPE), delay in opening LC for materials (Pipes, Pumps, etc.) due to Foreign Currency issue, Fuel shortage, delay in obtaining approval for VOs exceeding Contingency limit, revision of TCE & approvals also affected to the delay of the Project.
The cumulative expenditure of the Project is Rs.3489.08 million, whereas Overall Physical Progress and Financial Progress are 87.33% and 77.6% respectively by end of July 2024.
Overview
The Wilgamuwa Water Supply Project is a medium scale water supply project designed to provide safe, reliable, and sustainable drinking water to communities in the Wilgamuwa Divisional Secretariat Area. The project aims to provide safe drinking water to the public as a measure to the unknown CKD prevailing in that area as well as to enhance the quality of life for residents by ensuring continuous access to clean water, supporting public health, and promoting regional development.
Objectives
- To provide safe and adequate drinking water to households, schools, and public institutions in Wilgamuwa area.
- To reduce the reliance on unsafe water sources and minimize the spread of waterborne diseases.
- To improve living standards and support socio-economic growth in the region.
- To implement an environmentally sustainable water distribution system.
Key Components
- 6000 m3/ day capacity Intake at Heenganga
- 300 mm dia 1040 m length raw water pumping main
- 5500 m3/day capacity water treatment plant
- 800 m3 capacity water storage tank at Sulugune
- 300 m3 and 225 m3 Water towers at Wilgamuwa and Vihiaragama
- Transmission system and Distribution system (Approx. 145 kms).
- Office building at Wilgamuwa
- Three staff quarters at Bathgampola and Sulugune area.
Present Status
The project was initiated as a Design & Build contract awarded to M/s Hovael – CML Joint Venture, in which main contractor was M/s CML-MTD Construction Ltd, and the Contract was commenced on August 2016 and was intended to be completed in two years. Though the construction progress was satisfactory during the initial stages of the project, progress severely impacted by financial crisis faced by M/s CML-MTD Construction Ltd. leading to a complete standstill until June 2020. Subsequently, the Contract was terminated by the Employer on 19.12.2023.
Under the Re-Activation of Wilgamuwa Water Supply Project, the balance works are implemented under several contract packages as follows and the present physical and financial progress are 77% and 52 % respectively.
- Construction of Balance Civil Works of Intake, Raw Water Main and Water Treatment Plant.(Package I): Constructions in progress
- Construction of Balance Works of Transmission and Distribution System. (Package II): Bid evaluations in progress
- Construction of E&M Works for Intake and Water Treatment Plant (Package III): Bid Evaluation in progress
- Constructions of Balance Wworks of Wilgamuwa and Viharagama Water Towers; Constructions in progress
- Construction of Balance Works of Office Building; Constructions completed.
Water Treatment Plant
Intake
Viharagama Tower
Wilgamuwa Tower
OIC Office
Pipe laying
Yard
Objective
The proposed Towns East of Colombo District Water Supply Project aims to provide safe pipe borne drinking water to the people in the eastern part of Colombo district in the Western Province of Sri Lanka. The Identified water sources for the proposed Towns East of Colombo District Water Supply Project are Labugama and Kalatuwawa Water Treatment Plants. The total estimated population to be benefitted by this project in the year 2040 is 373, 304. Over 91, 000 water supply connections are proposed to be given by this water supply project to the people in the proposed project area by the year 2040. It is proposed to implement the above project by 03 contract packages as given below.
Details on Contract Packages
Contract Package – 1
Source of Funding | Loans from Local Banks |
Contractor | M/s Access Engineering PLC |
The Project Area | 40 GNDs will be covered in Homagama, Seethawaka, Padukka & Horana DS Divisions |
No. of Beneficiaries & Expected Demand in the year 2040 | 76,179 Nos. 15,536 m3/day |
Proposed Total length of pipes | Distribution - 175 km Transmission - 4 km |
Laid Total length of pipe | Distribution – 230 km Transmission – 4.07 km |
Physical Progress as at 31st July 2024 | 100% and taken over on 10.02.2020 |
Contract Sum | LKR. 5,170 million |
Total expenditure up to 31st July 2024 | LKR. 4,647 million (Financial Progress 90%) |
Major components of the package: | a) Supply & Laying of 1000mm dia. DI Pipes and all accessories for a length of 4km from Pitumpe to Meegoda.
b) Supply & Laying of HDPE Pipes as distribution mains and all associated works for a total length of 175 km within 40Nos. GNDs of Seethawaka, Padukka & Horana Divisional Secretariat areas. |
GNDs to be Covered | Homagama DS Division Suwapubudugama
Padukka DS Division Dampe, Horakandawala, Horagala West, Beruketiya, Horagala East, Madulawa Nort, Madulawa South, Kurugala, Poregedara, Udumulla, Beliattavila, Miriyagalla, Angamuwa, Mahingala, Weragala, Angampitiya, Halpe, Uggalla, Pahala Bope, Siyambalawa, IhalaBope, Gurulana, Udagama, Dambora, Malagala, Yatawathura, Kahawala, Thummodara
Seethawaka DS Division Pagngnagula, Ilukovita, Koswatta, Lahirugama, Digana, Mambula
Horana DS Division Kotigangoda, PahalaMillewa–N, PahalaMillawa–S, IhalaMillewa–N, Kidelpitiya
|
Present Status | The Contractors has initiated the Dispute Adjudication process to resolve the Dispute on the Temporary Reinstatement Gravel Road Surfacing’s. |
Contract Package – 2
Source of Funding | Loans from Local Banks |
Contractor | M/s Maga Engineering (Pvt.) Ltd. |
Proposed Total length of pipes | Distribution - 10 km Transmission - 8 km |
Laid Total length of pipe | Distribution - 10.04 km Transmission – 7.73 km |
Physical Progress as at 31st July 2024 | 94.62% and Partial taken over for OIC Office Building on 06.02.2019 Partial taken over for Distribution & Transmission Main on 13.02.2020 |
Contract Sum | LKR. 4,823 million |
Total expenditure up to 31st July 2024 | LKR. 2,978 million (Financial Progress 61.75%) |
Major components of the package: | a) Construction of 18,000m3 capacity ground reservoir at Labugama.
b) Supply & Laying of 1000mm dia. DI Pipes and all associated works for a length of 8km from Iridapola Junction to Pitumpe.
c) Construction of Office Buildings & Quarters.
d) Supply & Laying of HDPE Pipes as distribution mains of 10 km and all associated works. |
Present Status | Delay in supply of pipe, fittings & accessories for yard piping at ground reservoir due to the import restriction & prevailing economy crisis in the country. At present, some flange pipes are being locally fabricated. |
Contract Package – 3
Source of Funding | Loans from Local Banks |
Contractor | M/s Sierra Construction Ltd. |
The Project Area | 78 GNDs in Seethawaka, Padukka, Homagama & Kaduwela DS Divisions |
No. of Beneficiaries & Expected Demand in the year 2040 | 297,125 Nos. 69,522 m3/day |
Proposed Total length of pipes | Distribution – 400 km |
Laid Total length of pipe | Distribution – 402 km |
Physical Progress as at 31st July 2024 | 100% and taken over on 28.07.2020 |
Contract Sum | LKR. 10,029 million |
Total expenditure up to 31st July 2024 | LKR. 7,443 million (Financial Progress 74.06%) |
Major components of the Package | Supply & Laying of HDPE Pipes as distribution mains and all associated works for a total length of 400km within 78Nos. GNDs of Kaduwela, Homagama, Padukka & Seethawaka Divisional Secretariat areas. |
GNDs to be Covered | Kaduwela DS Division Batewela, Dedigamuwa, Welipillewa, Embilladeniya, Nawagamuwa –S
Homagama DS Division Diyagama East, Diyagama West, Panaluwa, Gehenuwala, Watareka South Watareka North, Owitigama, Godagama South, Kurunduwaththa, KiriberiyaKele, Prasannapura, Dolahena, Magammana East, Magammana West, Deepangoda, Pitipana South, Pitipana North, Kandanawaththa, Uduwana, Mawathgama, Walpita, Nawalamulla, Meegoda North, Meegoda South, Mullegama South, Habarakada North, Mullegama North, Meegasmulla, Henawatta, Habarakada South, Panagoda Town, Habarakadawatta, Panagoda East, Panagoda West, Godagama North
Seethawaka DS Division Kudakanda, Thunnana West, Koodaluvila, Thunnana East, Diddeniya North, Niripola, Ihala Hanwella North, Ihala Hanwella South, Neluwaththuduwa, Kahahena, Diddeniya South, Elamalawala, Welikanna, Pelpola, Kaluaggala, Suduwella, Giraimbula, Brendigampola, Kahatapitiya
Padukka DS Division Liyanwala, Pitumpe South, Padukka, Pahala Padukka, Galagedara North, Galagedara East, Galagedara South, Arukwatta North, Ganegoda, Arukwatta South, Mawathagama West, Pinnawala South, Waga North, Pitumpe North, Wewelpanawa, Pinnawala North, Waga East, Waga South, Waga West. |
Present Status | Since the DAB process couldn't be resolved the issue of payment for the Temporary Reinstatement of Gravel Surface, it has been referred to the Arbitration process. |
Total Service Connection Given
Through the all three Packages up to 31st July, 2024 - 40,341 Nos.
Coverage Area
PHOTOS
Package – 01
Package – 02
Package – 03
Introduction
The Polgahawela, Pothuhera & Alawwa Integrated Water Supply Project is being implemented by the National Water Supply & Drainage Board (NWSDB) with financial assistance from the Exim Bank of India, the Bank of Ceylon, and the Government of Sri Lanka. The project was awarded to M/s Va Tech WABAG Ltd. of India as a lump-sum contract under the FIDIC Yellow Book 1999 for Design and Build Contracts, at a total project cost of USD 108 million. The project commenced on 1st July 2017 and was initially expected to be completed by 30th June 2020.
However, due to the force majeure conditions that prevailed in the country and the subsequent economic crisis, the project was severely affected and could not be completed as originally scheduled. The completion of the permanent works is now expected by the end of 2025.
On 19th December 2022, the Employer took over approximately 65% of the Permanent Works, including the Water Treatment Plant, Transmission Mains, and Distribution Zones in Polgahawela and Alawwa, thereby enabling the supply of pipe-borne water to residents in these zones.
Objective of the Project
The objective of the project is to provide potable and safe piped water to approximately 162,725 people through 38,000 new service connections, and to improve the service quality of 11,250 existing connections in 167 Grama Niladhari Divisions (GNDs) located within the Polgahawela, Alawwa, Kurunegala, Weerambugedara, and Mallawapitiya Divisional Secretariat Divisions (DSDs).
Coverage Area
The scope of the project is divided into the following key components:
- Construction of a 6 m high weir across the Ma Oya River
- Construction of an intake facility with a capacity of 31,000 m³/day at
- Construction of a Water Treatment Plant with a capacity of 29,000 m³/day
- Laying of 5 km of 700 mm diameter raw water transmission main
- Laying of 39 km of clear water transmission mains
- Laying of 57 km of distribution network
- Construction of six ground reservoirs (capacities: 50 m³, 175 m³, 500 m³, 800 m³, 1,500 m³, and 2,000 m³) and one elevated water tower (1,500 m³)
- Installation of electrical and mechanical systems
- Construction of institutional buildings and staff quarters (three institutional buildings and two quarters)
Funding Arrangement of the Contract
Foreign Component
The funding arrangement of project amounting to USD 108 Mn is funded as follows.
Loan by EXIM Bank of India (85%) - USD 91.8 Mn
(LKR 13,311 Mn @ 1USD = LKR 145.00)
Loan by BOC (15%) -USD 16.2 Mn
(LKR 2,349 Mn @ 1USD = LKR 145.00)
Local Component
General Treasury - Rs. 4,547.8 Mn
Total project cost - Rs. 20,207.80 Mn.
Present progresses of the Contract
The Physical progress of the Project as of 30th September 2025 is 94.7% and the financial progress is 93.29%.
Physical progress of the project as of 31st July 2024
No | Project Components | Progress(%) |
1 | Preliminary | 99.71 % |
2 | Weir at Karandana (1.6m-H, 100m -L) Embankment Protection – 480m | 93.62 % |
3 | Intake(Channel, Pump House, MCC, DG, Transformer Cubical buildings) | 94.87 % |
4 | Raw water transmission (700mm dia. & 1.5Km) | 100.00 % |
5 | Water Treatment Plant | 92.31 % |
6 | Clear Water Transmission - 38.6 Km | 99.00 % |
7 | Clear water storage reservoirs (6Reser &1Tower) | 90.52 % |
8 | Distribution System - (181.57 Km) | 75.00 % |
9 | Institutional Buildings –(3 Offices and 2 Staff Quarters) | 74.60 % |
10 | Electromechanical | 81.25 % |
11 | Ancillary work | 78.50 % |
Overall | 94.10 % |
Present Situation of the Contract
On 19th December 2022, the Employer took over 80% of the Permanent Works, including the water treatment plant, transmission mains, and distribution zones in Polgahawela and Alawwa. However, the Contractor suspended work on 1st September 2022 due to the Employer’s failure to make payments or provide financial assurances following the suspension of funds by the Exim Bank of India and the Bank of Ceylon. The total outstanding payment to the Contractor from July 2022 to 23rd July 2024 amounted to USD 4.503 million.
On 24th July 2024, the Contractor was paid LKR 1.0 bn with the receipt of LKR 1.0 bn from Treasury Funds following the Cabinet decision AMP/24/0874/611/017 dated 28th May 2024 aiming for the completion of the critical balance permanent works of the project.
Subsequently, the Contractor resumed the critical balance works of the project with effect from 25th July 2024 and the Construction works are ongoing.
Investment Plan
The project requires an additional LKR 3.1 billion, which includes the outstanding payment due, and the retention money owed to the contractor. This amount is necessary for the successful completion of all aspects of the project. Therefore, it is essential to implement a methodology for arranging the remaining LKR 3.1 billion. Until these funds are secured, the contract cannot be closed, even if the permanent work has been completed.
| Year 2024 (from 31.07.2024-31.12.2024) & 2025 |
Foreign Funds (Code 12) | 3,100 |
Local Funds (Code 17) | 100 |
Personal emoluments | 34 |
Total | 3,234 |
