Sri Lanka to sign coal plant deal with India after elections

Jan 21, 2010 (LBO) – The wrapping up of a joint venture deal to build a coal power plant on Sri Lanka’s eastern coast by India’s National Thermal Power Corporation (NTPC) has been put off till presidential polls are over, an official said. The government said a joint venture agreement and a power purchase agreement has been finalized but “some issues” remained with the implementation agreement. NTPC and Sri Lanka’s state-run Ceylon Electricity Board has been negotiating for three years to build a 500 MegaWatt coal plant in Trincomalee on Sri Lanka’s eastern coast.

“The memorandum of understanding was signed three years ago,” M M C Ferdinando told reporters.

“Nearly all the agreements have been finalized, only three items are left to be finalized.”

“These three issues have been agreed upon but we need the Attorney General’s approval on the terminology.”

Presidential polls are due on January 26. Ferdinando said the deal was expected to be inked by February 15.

Last week the government said the cabinet of ministers had given the nod to extend a memorandum of understanding with NTPC by three months from December 28, 2009.