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Sri Lanka's Sampur coal power project delayed
Fri, Apr 23, 2010, 11:35 pm SL Time, ColomboPage News Desk, Sri Lanka.
Apr 23, Colombo: Sri Lanka's proposed coal power plant at Sampur in Trincomalee to be built through a partnership between India's power company NTPC and Ceylon Electricity Board (CEB) has been delayed and will not meet the earlier deadline of being commissioned by 2011, an Indian media report said.
According to Livemint.com of India, the Indian state-run power utility NTPC Ltd.'s first overseas project, a 500MW plant to be built in Sri Lanka, has been delayed by at least four years due to financial disagreements with its foreign partner and Tamil separatist strife in the island nation that ended last year.
The US$ 500 million power project is reportedly to be set up as an equal joint venture between NTPC and CEB on a build, operate, own and transfer basis and a debt to equity ratio of 70:30.
NTPC has signed an agreement with CEB and the Sri Lankan government in December 2006, but a slew of other agreements, such as a joint venture agreement and a power purchase agreement, are yet to be inked, the report said.
Following the finalization of the agreements which is expected to take a year, the construction of the plant and setting up related infrastructure are to take another three years.
The power purchase agreement, negotiated six months ago has reportedly not been signed yet.
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