Recent articles on Kandy City Wastewater Management Project Funded by JICA

With regard to the recent media reports on Kandy City Wastewater Management Project (the “Project”), Japan International Cooperation Agency (“JICA”) wishes to clarify misconceptions due to factual inaccuracies.

The Project in question is a Japanese Official Development Assistance (ODA) loan project funded by JICA. The loan agreement was signed in March 2010 in the amount of about JPY14 billion. This project is designed to improve the living environment and water quality of Mahaweli River by providing better sanitation facilities equipped with effective systems for collection, treatment, and disposal of wastewater in Kandy City. Also included in the scope of this project is rehabilitation of sanitation facilities in densely populated areas, aiming to enhance the standard of living, health, and well-being of the people in the area.

The project comprises the following components:

We wish to note that the project has seen a great progress in each of the abovementioned components as follows.

The WWTP was successfully completed and handed over to National Water Supply and Drainage Board (NWSDB) in 2020. For the above component 2), the Project has completed its infrastructure scope, including the installation of a 225 km sewer network. For the component 3), 4,100 properties have already been connected to the sewer network and 5,000 cubic meters of wastewater per day is now being treated at the plant. Regarding the component 4), construction and rehabilitation of all sanitation facilities (i.e. 14 public toilets and one bathing place) have also been completed and handed over to Kandy Municipal Council (KMC) with necessary trainings to KMC and community-based organizations for proper maintenance.

Overall, progress rate of the project as measured by physical progress stands at 94% as of May 2024. Unfortunately, the implementation of the remaining works has faced difficulties since the Sri Lankan Government’s default on external debt was announced in April 2022. This event, though unfortunate in itself, is not by any stretch of the imagination “abandonment” as reported in some newspaper articles. In fact, the executing agency of the Project, National Water Supply and Drainage Board (NWSDB), in close consultation with JICA, has been taking all possible measures to continue with the Project even in an extremely restrictive environment.

Besides, we would also like to draw attention to the fact that the WWTP with 4,100 property connections has already been showing signs of improved water quality in Mahaweli River and its tributaries in the basin. To our best knowledge, the degradation of sanitary situation including the water quality in Mahaweli River mentioned in the above-mentioned news articles would have been even worse if it were not for the Project.

As announced by the Foreign Minister of Japan, Ms. KAMIKAWA Yoko, during her visit to Sri Lanka on 5^th of May, we expect to resume the disbursement of JICA ODA Loan to Sri Lanka once the memorandum of understanding (MOU) on debt restructuring between the Official Creditor Committee and the Government of Sri Lanka is signed, and the Sri Lankan government’s intension is confirmed to swiftly conclude a bilateral agreement that follows the MOU. JICA will support the expeditious implementation of the Project by NWSDB once the disbursement of the JICA ODA Loan has been resumed.

Given all these facts and situations, the governments of Japan and Sri Lanka and JICA are all making best efforts toward the resumption of ODA loan projects, hence supporting the lives and livelihoods of the people of Sri Lanka.

Lastly, JICA would like to reiterate our commitment to completing the Project, achieving the project objectives of improving the water quality and living environment in the Mahaweli River areas for the benefit of the people in the community.