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Mahaweli Authority of Sri Lanka for the Year 2010 for Your Information and Reference

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Mahaweli Authority of Sri Lanka for the Year 2010 for Your Information and Reference A N N U A L R E P O R T 2 0 1 0 MAHAWELI AUTHORITY OOFF SRI LANKA LELELETTERLE TTER OF TRANSMITTATRANSMITTALL Hon. Minister of Irrigation & Water Resources Management, Ministry of Irrigation & Water Resources Management. Hon. Sir, I am pleased to submit the Annual Report of the Mahaweli Authority of Sri Lanka for the year 2010 for your information and reference. Yours faithfully, Gamini Rajakaruna Director General Mahaweli Authority of Sri Lanka 23 February, 2012 MAHAWELI AUTHORITY OF SRI LANKA ANNUAL REPORT - 2010 CONTENTS PAGE Our Vision / Mission. III Historical background. IIIIII Brief profile of the Board of Directors and Senior Management. IIIIIIIII Director General’s Review. IVIVIV Board of Directors’ Report. VVV Audit Committee Report. VIVIVI Financial highlights in the preceding 5 years VIIVIIVII Board of Directors of the Companies Established under MASL VIII PART I --- ADMINISTRATION REPREPORTORT Chapter I --- Establishment Constitution and Functions 111 of the MASL Main function of the MASL 2 Mahaweli Systems - B, C, Walawe, H, L, G, Huruluwewa , Victoria and D (Medirigiriya) 3 - 23 A. Secretariat 24 B. Planning & Monitoring 24 - 27 C. Central Internal Audit 28 Chapter II --- Technical Services Division (29(29(29-(29 --- 48 ) 1. Project Planning 29 2. Project Implementation 30 - 37 3. Headwork’s, Administration opera. & maintenance 37 - 39 4. Dam Safety & Reservoir Conservation. 39 5. Downstream development work. 40 6. Mahaweli Architectural Unit. 41 7. Development of Mini Hydro Power projects. 42 8. Development work in Kala oya Basin organization 43 9. Environment and forest conservation 44 10. Water Management secretariat 45 11. Land use planning 46 - 48 Chapter III --- Development Services Division (49 --- 67) 1. Land 49 - 53 2. Agricultural Development / Fish and Livestock Development 54 - 57 3. Human Resources & Institutional Development. 58 - 66 4. Business Development 67 Chapter IV --- Administration & Finance Division (68 --- 74) 1. Personnel & Administration. 68 2. Legal 68 3. Finance. 69 4. Mahaweli Centre. 70 - 72 5. Mahaweli Security Corps. 73 - 74 6. Transport. 74 Chapter V --- Dam Safety and Water Resources Planning (75 --- 90) Project (DSWRPP). Chapter VI --- Companies Established under the MASL (91 --- 98) 1. Mahaweli Consultancy Bureau (Pvt) Ltd 2. Natural Resources Management Services (Pvt) Ltd 3. Mahaweli Venture Capital Company (Pvt) Ltd 4. Mahaweli Livestock & Agro Enterprises (Pvt) Ltd 5. Mahaweli Livestock Enterprises Ltd Tables - Activities implemented and progress achieved by Mahaweli Systems, Divisions, Units, Projects and (99 - 165) Programs. Part II --- Annual Accounts. (166 --- 202) Part III --- Auditor General’s Report. (203 --- 229) Part Iv - Director General’s Comments (230 - 242) VISION The overall Mahaweli Authority of Sri Lanka (MASL) Vision is “Harnessed Rivers, well managed basins moved from agrarian to prosperous society and promoted economic development” The vision of the transition is “prosperous society and healthy ecoeco----systemsystem in the Mahaweli region”region”. MISSION The primary task of MASL has been and remains “ the improvement of human life in the Mahaweli impacted areas ”.... HISTORICAL BACKGROUND Shortly after independence, in the fifties, proposal for development of Sri Lanka (then Ceylon) were vigorously pursued. There was very little industry and hence development of agriculture was the main concern. Growing food for the expanding population became a priority. It was noticed by the political leaders, engineers and many others of that time that the largest river, the Mahaweli, was hardly being made use of and its waters emptied into the sea without benefiting the people. It was also noted that there were large areas of land in the Dry Zone which could be developed for growing of rice, if only water was available. In order to develop the water resources of the Mahaweli a joint study between the United States Operation Mission to Ceylon and the Irrigation Department resulted in a report titled “Mahaweli Ganga Basin Development Transbasin Diversion Scheme” published in April 1961. Thereafter, the Government obtained assistance from the UN and a UNDP / FAO mission along with the Irrigation Department prepared in 1968 a Master Plan for the Development of the Mahaweli Ganga for Irrigation and Hydro Power. The first phase of the project started with the construction of the Polgolla barrage across the Mahaweli and a tunnel to divert 57 cms of water to the Dry Zone. This was followed by the construction of the Bowatenna Dam and another tunnel to take water to the Kalawewa (down stream) areas. This work was done during the period 1969 to 1977. Then commenced the grand development works under the Mahaweli Accelerated Programme during the period 1978 to 1986 when the major dams such as Kothmale, Victoria, Randenigala, Rantambe and Maduru Oya were constructed with funds donated from several developed countries. At the same time development of large irrigation settlement in System H (Kalawewa), C (Dehiattakandiya) and B (Welikanda area) commenced and work was carried out successfully. BRIEF PROFILE OF THE BOARD OF DIRECTORS DURING THE YEAR --- 2010 Eng. (Dr) Dharmasiri S. de Alwis. Director General, Chairman. Mr. K. W. Ivan de Silva Director General Chairman Mr. D. M. C. Dissanayaka Director General Chairman Mr. H.P.S. Somasiri. Actg. Director General Department of Irrigation. Director Mr. S. Amarasekara Secretary, Ministry of Agriculture Development & Agrarian Services, Director. Mr. R. M. P. Ratnayake Director/HRD Department of National Planning Director Mr. W. S. D. De Silva Deputy General Manager, International Treasury PABC Bank. Director Mr. H. M. Gunasekara Director General Department of National Plan Director Eng. M. A. P. Hemachandra Working Director CECB Director Eng. Dr. G. G. A. Godaliyadda Director General Irrigation Department Director REVIEW OF DIRECTOR GENERAL FOR THE YEAR 2010 The Mahaweli Authority of Sri Lanka (MASL) was established by the Parliament of Sri Lanka under Act no.23 of 1979. The year 2010 marks the completion of the 31 year of its existence. The functions of the Mahaweli Authority of Sri Lanka are set out in Section 12 of the MASL Act, and it is entrusted with the task of implementing the Mahaweli Ganga Development Scheme. The Mahaweli Authority of Sri Lanka is a service oriented organization which depends on funds allocated by the State annually. The Organization, in keeping with Good Governance practices, appointed a committee, namely the Audit & Management Committee, comprising three Members of the Board of Management and a representative of Auditor General by invitation. It is chaired by a Representative Member of Ministry of Finance & Planning. During the year, much progress has been made with regard to the on going development work in the foreign funded projects and promoting cultivation of cash crops in the irrigated areas. During the year, the MASL continued its emphasis on the development of investment activities in areas where irrigation and social infrastructure are already reached and operational facilities. The programmes for the settlement of farm families and provision of irrigation facilities as well as social infrastructure facilities were in progress in the year 2010. Furthermore, MASL has focused on the development of irrigated agriculture, minor food crops, livestock development, inland fisheries and industries in the Mahaweli systems to improve the socio-economic conditions of the rural population. MASL identified several inactive income and revenue generating sectors such as lease, rent, royalty from assets such as lands, buildings etc. Action has been taken during the year to improve these sectors to a higher level of productivity. The increased agricultural, livestock and fisheries production in the Mahaweli systems have greatly contributed in enhancing the national income. In conclusion, I would wish to express my sincere appreciation to my colleagues of the Board of Management and the staff of the MASL for the contributions made by them to achieve positive results in the year 2010. D.M.C. Dissanayake Director General Mahaweli Authority of Sri Lanka THE REPORT OF THE BOARD OF DIRECTORS The Board of Directors of the Mahaweli Authority of Sri Lanka have pleasure in presenting their report together with the Audited Financial Statements of the Organization as at 31 st December 2010. Review of the year The Chairman’s review of operations published in part I of the Administration Report contains detailed description of the operation of the organization during the year ended 31 December 2010. Also, steps have been taken to ensure that the assets of the organization are safeguarded and proper systems of internal control have been made available with a view to the prevention and detection of fraud and other irregularities and minimizing of risks. The process of reviewing the effectiveness of the internal controls has been delegated to the Audit and Management Committee. The Board wishes to express great appreciation to all MASL staff for their enormous commitment shown in their work. D.M.C. Dissanayake Chairman Eng. K.W. Ivan de Silva Director H.M. Gunasekera Director Eng. Dr. G.G.A. Godaliyadda Director M.A.P. Hemachandra Director SENIOR MANAGEMENT AND SPHERES OF AACTIVITIES.CTIVITIES. 01. Executive Director (Technical Services) - Eng. N.C.M. Navaratne Responsible for; 1. Overall planning and implementation of projects relating to consolidation, rehabilitation, Upgrading and New Development. 2. The Management of physical
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