Announcement of IDA Finances Technical Assistance Project in Sri Lanka on April 21, 1980

FOR IMMEDIATE RELEASE " ' World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/47 April 21, 1980 IDA FINANCES TECHNICAL ASSISTANCE PROJECT IN SRI LANKA The International Development Association (IOA), an affiliate of the World Bank, today announced the approval of a credit of $3 mill ion to help finance a technical assistance project in Sri Lanka. An additional $2 mill ion will be provided from the European Economic Community Special Action Account administered by IDA. Under the project, technical assistance (including training) will be provided to the Government for: (i) a study of plans for conveying and utilizing the surplus waters of the Mahawel i Ganga (major river) to develop land in three alternative areas; (ii) an ongoing review of designs and tender documents for the Right Bank Canal, and preparation of final • designs and tender documents for construction of civil work and social infrastructure in System C in the Mahawel i Basin; and (iii) support for other studies and designs of projects in the Mahawel i Ganga Development Program. Sri Lanka launched the 30-year Mahawel i Ganga Development Program in 1970 to overcome two major problems facing the country-- unemployment and excessive imports of agricultural products. In 1977, the Government of Sri Lanka decided to accelerate the construction of five major projects in the Program, comprising five dams ~nd hydropower plants with an installed capacity of about 600 megawatts and development of about 290,000 acres of new lands. The technical assistance project being assisted by IDA will support the Government's efforts to accelerate the implementation of the Program. The IDA credit to Sri Lanka is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents . •