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Leading News from Sri Lanka ::
Nov 19, Colombo: Sri Lankan government is to borrow US$ 891 million from the Exim Bank of China to finance the Phase II of the Norochcholai Coal Power Plant Project in Puttalam District.
The Cabinet granted approval to a request made by President Mahinda Rajapaksa as the Finance Minister to enter into a Loan Agreement with the Export- Import (Exim) Bank of China to borrow the funds.
The proceeds of the Credit Facility will be given to the Ceylon Electricity Board on terms to be determined by the Treasury.
The Government of China has agreed to extend a Preferential Buyer's Credit Facility through the Exim Bank of China for the implementation of Phase II of the Coal Power Project.
The government seeks to obtain the full cost of the project US$ 891 million from the Exim Bank under the Preferential Buyer's Credit Facility.
The Norochcholai Coal Power Plant Project is planned in three phases to provide 300 MW initially and an ultimate capacity of 900 MW when it is fully developed.
First phase of the project at a total cost of US$ 455 million is nearing completion successfully with the financial assistance from the Exim Bank of China under a Preferential Buyer's Credit Loans of US$ 300 million and a Buyer's Credit Loan of US$155 million.
Under the Phase I, scheduled to be completed at the end of 2010, a 300MW power plant together with jetty for coal handling, a transmission line from Norochcholai to Veyangoda and a substation at Veyangoda are being constructed.
The Chinese government has agreed to carryout the project on a Design, Build and Transfer (DBT) basis.
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