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.