Monday, 16 September 2019 05:35

Colombo Water Supply Project comes to halt

The Colombo Water Supply Service Improvement Project has been halted temporary as the financial allocation from the 2019 budget has been exhausted, official sources said.

In order to avoid cash flow problems and smooth functioning of utilisation of budgetary provisions, close cooperation and monitoring mechanisms with devolved agencies and line ministries are now enforced.

When implementing development activities, commitment control mechanisms will be implemented for fiscal and cash flow management of foreign borrowings.

Making payment for the work done by contractors and subcontractors of major water and road projects has been curtailed and this has compelled them to temporary suspend the work. .

Under these circumstances contractors and sub contractors have found it difficult to get their payments for work done for the National Water Supply and Drainage Board (NWSDB)

The Colombo Water Supply Service Improvement Project was launched by the National Water Supply and Drainage Board (NWSDB) with the assistance of the government and the Asian Development Bank.

The project costs Rs. 40 billion and the pipe system in Colombo city is about 960km long, of which approximately 60 percent will be replaced with new pipes.

The laying of pipes has now been temporary halted as the contractors have suspended their work at present

(LI)

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