In 1997, the demand for water in Sri Lanka's Central Province, Greater Kandy, had far outgrown the amount of clean water that was supplied by the existing water treatment plants. The escalating water shortfall within the city of Kandy and in the northern part of Greater Kandy was particularly worrying. Furthermore, even for districts with water treatment facilities, the supply of water had to be rationed to certain days and hours due to supply capacity restrictions. The irregular access to clean water supply meant that crucial operations of the healthcare and tourism industry were greatly impeded and the livelihood of many Sri Lankans was affected too.

A pressing need for an advanced water treatment system to meet the growing demand for clean water of the population was called for. In view of Hitachi Plant Technologies' expertise in building advanced pump systems projects, the company, together with Taisei Corporation, was selected by the Sri Lankan government to construct an advanced water treatment system facility.