Coal Options

Jan 20 (LBO) - Work on Sri Lanka’s first 300 MW coal plant is to start in March with Chinese funding, regardless of political pressure, the government said Friday. Jan 20 (LBO) - Work on Sri Lanka’s first 300 MW coal plant is to start in March with Chinese funding, regardless of political pressure, the government said Friday.

“Work on a 300 MW coal power plant in Puttalam will start in March. The funding has been found. We will go ahead with it regardless of political pressure because we badly need cheap energy to meet our future needs,” Treasury Secretary Dr.

P.B Jayasundera said.

The plant is to be set up in Norochcholai in Puttalam, where feasibility studies have been completed. “The first stage of the Puttalam plant will be done hopefully by end 2008,” Jayasundera said.

The Chinese government has agreed to provide US$ 300 million for the construction of a 300 MW coal fired power plant in Puttlam, a site that was written off by previous governments due to political pressure.

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Last August, the Ceylon Electricity Board signed a memorandum of understanding with China National Machinary Import and Export Corporation (CMEC) for the project.

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