GL PEIRIS DEMANDS CLARIFICATION ON EXTERNAL RESOURCE MOBILISATION

Kalu Ganga multipurpose development project

Sri Lanka Podujana Peramuna (SLPP) Chairman, Professor G.L. Peiris yesterday wrote to the External Resources Department (ERD) Director General requesting a clarification on the factual position regarding external resource mobilisation initiatives for the Moragahakanda Kalu Ganga multipurpose development project.

In his letter, the former External Affairs Minister demanded details of loan requests made by ERD and budgetary provisions made in terms of the provisions in the Right to Information (RTI) Act.

The President declared that project implementation and financing were not done by the ERD and that the benefit of having access to water, particularly to those in povertystricken districts, has been denied by the previous government

He has requested these details following remarks made by President Maithripala Sirisena at the ‘Moragahakanda Kalu Ganga’ multipurpose irrigation project ceremony held on July 23.

“The President declared that project implementation and financing were not done by the ERD and that the benefit of having access to water, particularly to those in poverty-stricken districts, has been denied by the previous government. I recall former President Mahinda Rajapaksa directed the Treasury to provide budgetary provision for this project along with several irrigation projects to undertake preparatory work such as land acquisition, resettlement, engineering, designs, consultancies and so forth. As the then External Affairs Minister, I discussed foreign funding possibilities with ambassadors and foreign ministers of Japan, China, Saudi Arabia and Iran, on the request of the then President Rajapaksa to expedite implementation of the development project.

“I recall that when Japan was negative to the project, Saudi Arabia agreed to fund the ‘Kalu Ganga’ segment of this project. This was as far back as 2007. Subsequently, a positive funding response came from the China Development Bank (CDB) with USD 300 million on a 15-year term credit for the ‘Moragahakanda Kalu Ganga’ segment of the project, together with a 30MW hydro-power project in 2012,” he said.

He said the 2012 annual report of the Finance and Planning Ministry mentioned that the government secured finances from CDB to implement the project in 2012.

“It is evident that the project had started as early as 2007. Funding has been secured from external sources, foreign loan agreements have been executed, contractors have been engaged and budgetary provision made for the successful completion of these projects. In fact, I am of the view that if not for the change of government in January 2015, the irrigation project could have been commissioned in 2016 and downstream work would now be in progress,” he said.