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Chinese firm signs deal on construction of major dam in Sri Lanka


09:06, November 04, 2011

COLOMBO, Nov. 3 (Xinhua) -- A Chinese company on Thursday signed a contract with Sri Lanka to build a major reservoir in the country to boost its irrigation capability, officials said.

The contract was signed between China CAMC Engineering Corporation and Sri Lanka's Ministry of Irrigation and Water Resources Management in Colombo.

The Irrigation Ministry said Yan Oya reservoir is one of the new water resources development projects undertaken in Sri Lanka.

The ministry said the project located in northeastern Sri Lanka will generate benefits to local economy by way of increased agricultural production, inland fishery development and employment opportunities.

CAMC Chairperson Luo Yan said during the signing ceremony that the company, which has successfully completed a lot of international engineering projects, will strive for the early completion of Yan Oya reservoir project and create benefits for the local people.

Under the contract, the total cost for the project is 176 million U.S. dollars and it is expected to be completed in four years.

The ministry said a skilled and unskilled labor force of 5,200 will be directly employed while another 2,000 will find employment opportunities in support service during the construction period.

Besides, once the project is completed, it will be a source of drinking water for people in the northeast.

Officials said the project will be a precursor to alleviation of poverty of at least 12,000 families in the area who had been going through many hardships as they were directly victimized for over three decades due to the conflict between the government troops and Tamil Tiger rebels in the north and east of Sri Lanka which ended in 2009.

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