Sri Lanka seeks China funding for US115mn water supply deal with CATIC

ECONOMYNEXT – Sri Lanka is to seek funding from China Development Bank and a domestic lender for a 115 million dollar water supply system contract awarded to a Chinese firm.

The Cabinet of Ministers had given the nod to negotiate 85 percent of funding from CDB for a contract valued at 69.4 million dollars and 6.7 billion Sri Lanka rupees (46 million US dollars0. The balance funding will come from a domestic bank.

The construction contract had already been awarded to China National Aero Technology International Engineering Corporation (CATIC) will build a water supply project in the Thambuttegama area for National Water Supply and Drainage Board.

Sri Lanka is expected to give a Treasury guarantee to cover the financing in line with a cabinet decision made in January 2016 to supply pipe borne water to the area to reduce the risk of Chronic Kidney Disease for people in the area.

The  CKD had been linked to contaminated ground water in some studies.