Completed Development AidData Chinese Aid

China Eximbank provides RMB 487 million government concessional loan for Greater Kurunegala Water Supply & Sanitation Project

¥487.02M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Sri Lanka
Country	Sri Lanka
Start Date	Sep 18, 2013
End Date	Nov 27, 2033
Duration	7,375 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`49344`

Grant Description

China Eximbank provides RMB 487 million government concessional loan for Greater Kurunegala Water Supply & Sanitation Project On September 18, 2013, China Eximbank and the Government of Sri Lanka signed an RMB 487,016,800 government concessional loan (GCL) agreement [CHINA EXIMBANK (2013) 31 TOTAL NO (476)] for the Greater Kurunegala Water Supply & Sanitation Project.

📋 Loan / Grant Terms

⏳ Grace Period5 years

💹 Interest Rate2%

China Eximbank disbursed RMB 129,294,990.84 in 2014, RMB 71,322,224.62 in 2015, RMB 50,827,659.58 in 2016, RMB 116,375,945.72 in 2017, RMB 190,284,964 in 2018, and RMB 45,285,961 in 2019. The loan had achieved a 123.8% disbursement rate (RMB 603,391,745.76 out of RMB 487,016,800) as of December 31, 2019.

The borrower made no repayments in 2018. The borrower made repayments worth RMB 32,467,786 in 2019, RMB 32,467,787 in 2020 and RMB 32,467,787 in 2021.

The loan's amount outstanding was RMB 251,444,875 as of December 31, 2017, RMB 441,729,839 as of December 31, 2018, RMB 454,548,014 as of December 31, 2019, RMB 422,081,227 as of December 31, 2020, RMB 389,613,440 as of December 31, 2021, and RMB 373,379,547 as of June 30, 2022. By early 2022, it was clear that the loan was non-performing.

On April 12, 2022, the Government of Sri Lanka announced a ‘pre-emptive’ sovereign debt default, noting that it would suspend debt repayments to all external creditors other than multilateral institutions.

Its decision to suspend external debt service reportedly affected all China Eximbank loans with amounts outstanding at the time of the announcement.

The objective of the project was to meet the present and future demand of drinking water in the Greater Kurunegala area by increasing water supply capacity from 6500m3/d to 13000m3/d and establishing a proper waste water disposal system with a capacity 0f 4500m3/d.

This project involved the construction of a new treatment plant, a pipe sewer network (135 km), water transmission lines(8km), water distribution network (110km), and two elevated water towers (Kurunagala 1750 m3/d, 750 m3/d at Vahara). China Machinery Engineering Corporation (CMEC) was the contractor responsible for project implementation.

The project commenced on February 26, 2014 and was completed on August 13, 2018.

Upon completion, the project reportedly covered 397 square kilometers and solved the problem of access to clean drinking water for 600,000 people in 42 villages.

📋 Staff Comments

The Chinese project title is 斯里兰卡库鲁内格勒供水和污水处理项目. This project is also known as the Greater Kurunegala Water Supply & Sanitation (Sewerage) Project.
The Government of Sri Lanka loan key number is 2013041.
One source identifies the 2018 loan disbursement amount as RMB 119,195,979.
This issue warrants further investigation.

📚 Sources & References

Public Investment supported by Export Credit
Development_Performance_MidYear_2015
Department of External Resources 2013 Performance Report
ESTIMATES 2014 Ministry of Water Supply & Drainage
Public Investment 2017 -2020 (OFF BUDGET)
Parliament Question - Export Credit
Progress of development projects and programmes being implemented in 2017 ( as at 31st December 2017)
Progress as per the end of 3rd Quarter 2017 Department of Project Management and Monitoring
Progress of development projects and programmes being implemented in 2017 (As at 30th September 2017)
Progress of the Projects Implemented through the Capital Budget in the year 2016
Development Performance Mid Year Review 2016
DEVELOPMENT PERFORMANCE YEAR END REVIEW 2015
Annual Report 2009
Development Perfomance 2014
China-built project to benefit 70,000 people in Sri Lanka
Kurunegala Water Works Completed by Chinese Enterprise to Benefit 70,000 People
Sri Lankan Water Treatment Project Completed by Chinese Enterprise
TOC of Kurunegala Water Supply and Sewerage Plant Signed in Sri Lanka
Sri Lanka Greater Kurunegala Water Supply and Sewerage Project
Bring Benefits to Thousands of Families by Tunneling Through Mountains to Channel Spring--CMEC-undertaken Sri Lankan Water Plant Project Completed
CMEC-built Waterworks Receives Good Responses in Sri Lanka
Sri Lanka's Kuru Negrad water supply and sewage treatment project put into operation
GREATER KURUNEGALA WATER SUPPLY & SEWERAGE PROJECT
Greater Kurunegala Water Supply & Sanitation Project
The water supply and sewage treatment project of Sri Kuru Negrad constructed by Chinese enterprises
Public Investment supported by Export Credit
Government of Sri Lanka 2017 Bond Prospectus
Resource Mobilization
Annual Report 2018
CS-DRMS Report 814
The Export-Import Bank of China
Disbursements in 2014 January to December.pdf, 814 Disbursements Jan to Dec 2015
Disbursement from January to December 2016.pdf, 814-1 Annual 2017 for WEB New.pdf
Transactions For the period from to 2019/01/01 2019/12/31, 814 up to Oct 2018.PDF
Transactions For the period from to 2020/01/01 2020/12/31
Transactions For the period from to 2021/01/01 2021/11/30
Actual Disbursement by Transaction Date
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2018
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2019
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31ST DECEMBER 2021
Instrument-wise Details of Central Government External Debt obtained under Foreign Law as at 2022/06/30, 2015 Annual Report Ministry of Finance Sri Lanka
FINANCIAL STATEMENTS OF THE GOVERNMENT FOR THE YEAR ENDED 31 ST DECEMBER 2020
National Water Supply & Drainage Board of Sri Lanka Annual Report 2015
National Water Supply & Drainage Board of Sri Lanka Annual Report 2016 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

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Government of Sri Lanka

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