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Sri Lanka negotiates OPEC funds for irrigation project

Feb 05, 2010 (LBO) - Sri Lanka has wrapped up a deal to get a 16 million dollar loan from the OPEC Fund for International Development for an irrigation project in the island's central region, a senior minister said.
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The Kalu Ganga (river) development project is part of the Moragahakanda development program, information minister Anura Yapa said.
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The first phase of the project is estimated to cost 167 million US dollars.

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The Kalu Ganga dam which will be 67 metres high and 546 long and two saddle dams would cost 102.
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2 million US dollars to build.

The Kuwait Fund for Arab Economic Development is giving 37 million US dollars, the Saudi Fund for Development 46 million US dollars and the balance will be borne by the government of Sri Lanka.

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The 16 million US dollar credit from the OPEC fund will have an interest rate of 3.

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2 percent and a service charge of 1.
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0 percent on the principle amount withdrawn and outstanding.

It will be repayable in 20 years including a 5-year grace period.

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