Sept 13, 2011 (LBO) – Malaysia’s Octagon Consolidated said it close to finalizing a 40MegaWatt municipal waste burning power plant in the Western Province Sri Lanka where the island’s capital is located. The westerna province waste management authority had earlier said in its website that it was negotiating a 40MW waste burning plant with a foreign party in which the agency will have a 5.0 percent stake.
Sri Lanka’s state-run Ceylon Electricity Board has given a letter of intent to its subsidiary Orizon Renewable Energy (Private) Limited on September 06, the firm said in a filing on Malaysia’s stock exchange.
Octagon Consolidated said it is now working on a power purchase agreement which it hoped to conclude by the fourth quarter and planned financial closure by the end of 2011.
The firm said the plant would cost 249 million US dollars to build and would burn 1,000 metric tonnes of municipal waste a day
The waste management authority of Sri Lanka’s Western Province had give a 20 acre site in
Karadiyana, Kesbewa near and existing landfil for 30 years.
The firm said in January 2011, Sri Lanka’s power ministry had requested the island’s renciewable authority, public utilities comm