Commencement of the Accelerated Mahaweli Scheme - FAO, World Bank
1979 February 4
Construction work on the Kotmale Dam, the first of the Mahaweli Dams under the Accelerated Mahaweli Scheme, commenced and the Project was launched by President J. R. Jayawardena.
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| Kotmale Dam and Reservoir |
Extract from a FAO Report on the Mahaweli Basin
https://www.fao.org/4/x6861e/x6861e10.htm
5.4 The accelerated Mahaweli development
The first project of Phase I under the UNDP/FAO Master Plan was completed in 1976. The country was faced with steep inflation in 1973, primarily due to the oil price hike. The government changed in 1977, when 40% of the country's import bill was being spent on food imports and unemployment was in the region of 20% of the normal workforce (Anon., 1978). The rapidly rising inflation also indicated that the later the date of completion of the scheme, the higher would be the ultimate cost. According to one estimate the construction cost could double over a delay of eight years.
It was in the light of this situation that the new government in 1977 reviewed the project and made a policy decision to accelerate the Mahaweli Ganga Development Programme by telescoping the thirty-year planned programme to a six-year programme, commencing in 1979.
| Projects | Land area Irrigated - ha | Locationa | Hydropower | Cost (Rsb) | Benefit | |||
|---|---|---|---|---|---|---|---|---|
| Existing | New | (system) | Capacity megawatts | Power generated million KWh | (in million Ceylon rupees) | Rs. | % rate of return | |
| Polgolla Diversion (1969–73) | 41 460 | 34 150 | H.1 | 40 | 200 | 576 | 130 | 17 |
| Victoria-Minipe Diversion | 5 690 | 30 080* | C & E | 120 | 470 | 676 | 118 | 13 |
| Moragahakanda (1977–80) | 11 400 | 10 560 | A,D & H | 40 | 150 | 298 | 42 | 12 |
| Mahaweli and Maduru Oya Basin | 8 540 | 85 000 | A & C | 15 | 48 | 920) | 812 | 20 |
| Development in North Central Area | 33 000 | 106 000 | 293 | 1 169 | 3 113) | 12 | ||
a - location as in Fig. 24;
b - estimates made in 1969, extracted from UNDP/FAO, 1969
The Accelerated Mahaweli Ganga Development Programme did not alter the basic infrastructure of the original Master Plan, but the area to be developed was brought down to 140,000 ha in the Mahaweli Ganga and Maduru Oya Basins and an additional 23,000 ha in the Kalawewa Basin (Figs.23 and 24).
The reservoirs to be constructed are the Kotmale Reservoir, Victoria Reservoir, Ulhitiya-Rathkinda Reservoir and Maduru Oya Reservoir (Table 18).
The interconnections of the Mahaweli Ganga with the adjacent waterways and the envisaged water distribution pattern of the Mahaweli Ganga Diversion and Development Programme is schematically shown in Figure 25.
As a result of the proposed acceleration, instead of sequencing the programme of financing the construction, maintenance and operation, settlement and agriculture, hydropower generation and distribution, community development and infrastructural services, the government has decided that the major aspects be carried out simultaneously. Expectedly, many problems are bound to arise in such a telescoping of events, particularly with respect to the nature of colonization. Therefore, as an important aspect of the planning and implementation, considerable flexibility is permitted and continuous evaluations are made and necessary adjustments carried out.
Extract from a World Bank Report
Acceleration of the Mahaweli Program
42.
Late in 1977, the Government realized that, at the current rate of construction and population growth, the Program would not have much impact on the country's economy in terms of meeting existing serious food shortage and unemployment problems. General agreement on the desirability of accelerating the Program was reached between the Government and the Association in December 1977.
In response to the Government's request, the Association undertook to help mobilize international financial support for the Program and to advise on the scope of the studies and investigations required to carry it out.
Following the Association's advice, an Implementation Strategy Study was carried out by Netherlands-financed consultants (NEDECO) to:
(i) review and reevaluate the UNDP/FAO Master Plan and each of the separate projects;
(ii) examine the implications of various alternative phasings of the feasible projects; and
(iii) recommend a specific action plan taking into account technical, financial, economic, institutional and manpower constraints.
The Association also agreed that, in light of the urgency of the Program, the study need not hold up pro- gress of the ongoing physical work and should, in fact, proceed simultaneously with the execution of readily implementable projects for which technical and economic viability had been clearly established.
43. In March 1978, as Executing Agency of the UNDP-financed Multi-Sector Program of Project Preparation, the Association engaged a French engineering consulting firm, SOGREAH, to serve as a liaison between the Government and the Association and to act as general consultants to provide technical assistance to the Government of Sri Lanka in carrying out services related to the planning and preparation of final designs, specifications, and tender docu- ments of projects included in the Program.
44. After a review of available financial resources, construction capabilities and trained technical personnel, the Government decided to accelerate the construction of five major projects, comprising five dams and hydropower plants with an installed capacity of about 600 MW, and development of about 290,000 ac of new lands.
During the early months of 1978, the Government consulted with the Association and contacted several prospective donor countries for assistance in the preparation of the five projects. Expressions of interest were received from the following:
(i) Victoria Project-U.K.;
(ii) Maduru Oya Project-Canada;
(iii) Kotmale Project-Sweden; and
(iv) Randenigala Project-Germany.
Japan agreed to finance a feasibility study of the Moragahakanda Project.
45. Other possible external assistance included an expression of interest by the Government of Canada to finance feasibility studies of some of the other projects in the Program.
The U.S. indicated interest in providing financing for downstream development (the irrigation system, on-farm development and social infrastructure) of the Maduru Oya Project (System B).
The U.S. also is financing an in-depth study of the impact of the accelerated Program on the environment.
The Asian Development Bank recently approved a grant of US$98,000 to assist in the planning of roads in the Mahaweli area.
46. NEDECO's Final Report was completed in August 1979, several months after bilateral-financed consultants had started feasibility studies of four of the major projects.
NEDECO's findings differed significantly from the UNDP/FAO Master Plan--in part due to updated information and in part due to the use of more advanced analytical techniques and assumptions, (e.g. with regard to water availability, water requirements, regulation capability of the reservoir system, and alternative water conveyance systems).
Two of the significant NEDECO findings were:
(a) the Victoria, Maduru Oya and Kotmale reservoirs together can supply enough water to fully irrigate existing irrigated lands and the new areas proposed for development under the accelerated Program, thus permitting the water developed by the Randenigala and Moragahakanda reservoirs (and several small reservoirs) to irrigate lands elsewhere in the North Central River Basins (NCRB) or the Northwest or Southeast dry zones; and
b) if surplus Mahaweli water is to be diverted to the NCRB area, a different plan can be developed for conveying the water northward which would substantially lower the cost as compared with the conveyance system proposed under the UNDP/FAO Master Plan.
The Requirements for Technical Assistance
47.
In view of (i) NEDECO's findings, and (ii) the Government's desire to construct the Randenigala and Moragahakanda Projects as soon as feasibility can be established, there is an immediate need to carry out studies of a transbasin diversion plan. The determination of the area to which the water from these two Projects is to be diverted and utilized has become an urgent priority.
There is also a need to carry out promptly the preparation of final designs and tender documents for the development of the downstream works (irrigation and social infrastructure) in the command area to be served by the Victoria Project (System C), since the construction of the Victoria Project is expected to begin in early 1980 and the ongoing study carried out by the Government (assisted by its consultants, Hunting Technical Services, Ltd.) is only a feasibility-grade study of the area. By end 1984, when the headworks for the Victoria Project are expected to be completed, the downstream development for the Project should be in place so as to maximize benefits from the investment. The Government does not have the capability to carry out these studies due to the full commitment of its experienced engineering and technical staff to other ongoing works.
48.
While the UNDP and bilateral agencies are expected to continue to provide Sri Lanka with financing for technical assistance, the level of need for the proposed technical assistance project is beyond that which can be expected from these external sources over the next two years, particularly because of the financial constraints under which these sources will be operating during this period. Thus, the proposed project is intended to provide the Government with additional technical assistance funds at the amount required for an expeditious implementation of the Mahaweli Program.
49. At the Government's request, the proposed technical assistance project was identified jointly by the Government of Sri Lanka and the Association. It was prepared by the Government with IDA assistance. A mission visited Sri Lanka in November 1979 to discuss the project and the draft terms of reference of technical assistance prepared by IDA. A Staff Appraisal Report was not required. Negotiations were held in Colombo, Sri Lanka, on December 27, 1979. The Borrower's delegation was led by Mr. S. Velayutham, Director, External Resources Department, Ministry of Finance and Planning. A timetable of key events relating to the project and special conditions ofthe credits are given in Annex III.
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