Announcement of Canada and IDA Assist Water Supply Project in Sri Lanka on May 12, 1977

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE N0.77/55 MAY 12, 1977 CANADA AND IDA ASSIST WATER SUPPLY PROJECT IN SRI LAMKA Canada and the International Development ~ssociation (IDA), an affil i- ate of the World Bank, are jointly providing $14 mill ion on concessional terms to help finance a water supply project in Sri Lanka. IDA is extending a credit of $9.2 mil lion. A second credit of $4.8 million is being made from Canadian funds to be administered by IDA. Water supply in Colombo, the capital, and adjacent towns is inadequate. The $42.5· million project, when completed in 1981, will help provide a 24-hour ~ daily service to 1.2 mill ion consumers in Colombo and five adjacent towns to the south of the capital. In addition, safe water supply will be provided to 410,000 new consumers in towns north of Colombo and in Kalutara and Ambalangoda. The poorer sections of the community, who now depend largely on polluted water sources, will get an improved and adequate water supply through standpipes. The health and welfare of the people will be improved and a constraint to the growth of industry commerce and tourism will be removed. The IDA credit to Sri Lanka is for 50 years, including 10 years' grace. It will be interest free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. The !DA-administered Canadian credit is being extended on IDA terms. -o- • NOTE: Money figures are expressed in U.S. Dollar equivalents.