Sri Lanka to inaugurate delayed, Iran-assisted 120 MW Umaoya project this month

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ECONOMYNEXT – Sri Lanka’s Irrigation Ministry has planned to inaugurate $529 million worth Uma Oya multipurpose development project with 120MW hydro power generation capacity later this month on the advice of President Ranil Wickremesighe’s advice, the Ministry said in a statement.

The project was scheduled to be completed in 2015, but had been delayed several times due to unexpected issued faced during the project cycle and funding issue after the United States imposed economic sanctions on Iran and economic crisis in Sri Lanka.

The project was started in 2010 and the funding was to be received as loan grant from the Iranian government. However, Iran was able to provide $50 million before the sanctions. Sri Lanka has to bear the cost after the sanctions.

“President Ranil Wickremesinghe gave instructions to open the Umaoya Multipurpose Development Project at the end of April,” the Irrigation Ministry said quoting Pavithra Vanniarachchi, Minister of Irrigation, Wildlife and Forestry.

The project includes storing water in two reservoirs with dams before being brought through a 23 km tunnel to two turbines located underground and generating hydro power with a capacity of 120 megawatts and added to the national grid.

After power generation, the water is expected to be brought to three reservoirs while supplying water to 20,000 acres of old and new paddy fields in both the Yala and Maha cultivating seasons.

It also expects to fulfill the need of drinking water the people of Badulla and Monaragala districts.

The Memorandum of Understanding (MOU) for the construction was signed between the two countries in 2007 while Sri Lanka’s Cabinet approved the execution of the contract agreement between the Executing Agency, Sri Lanka’s Ministry of Irrigation and Water Management (MOIWM) of the GOSL and Iran’s FARAB Energy and Water Projects (FC).

When commencing the project on March 15, 2010, the scheduled date of completion of the project was on March 15, 2015. But the schedule completion date was extended to December 31, 2020 due to the unexpected water ingress into the head race tunnel and followed by social impacts. (Colombo/April 08/2024)

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[[{“value”:” ECONOMYNEXT – Sri Lanka’s Irrigation Ministry has planned to inaugurate $529 million worth Uma Oya multipurpose development project with 120MW hydro power generation capacity…

[[{“value”:” ECONOMYNEXT – Sri Lanka’s Irrigation Ministry has planned to inaugurate $529 million worth Uma Oya multipurpose development project with 120MW hydro power generation capacity…