Oct 08, 2013 (LBO) – Sri Lanka and India has inked a deal to build a 500MegaWatt joint venture coal power plant, in the island’s North Eastern coast which is expected to come on stream by 2018. Sri Lanka’s power ministry secretary MMC Ferdinando, chairman of state-run Ceylon Electricity Board WB Ganegala and NTPC chairman Arup Roy Choudhry and director commercial I J Kapoor had signed the agreements. State-run Ceylon Electricity Board signed a crucial power purchase agreement (PPA) with Trincomalee Power Company, which has India’s National Thermal Power Corporation (NTPC) as a 50 percent joint venture partner.
The plant is expected to cost 512 million US dollars and will be financed with 30 percent equity and 70 percent loan.
International tenders are to be called to get the most efficient coal technology, officials have said, which had been delayed due to alleged high heat rates and maintenance fees originally proposed by the Indian partner.
The PPA, a land lease, a coal supply agreement and a deal with Sri Lanka’s foreign investment agency and the implementation agreement was signed Monday.