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Norochcholai Power Plant To Go Online In November

Jul 29, 2010 4:54:36 AM - thesundayleader.lk

Chinese construction equipment at work

As construction on the 300MW power plant nears completion, the Sri Lankan cabinet has approved the Lanka Coal Company opening a Rs. 1 billion letter of credit to purchase coal and begin operations this November. The cost of the first shipment of 65,500 MT of coal will cost USD $7 million.

This coal power plant was commissioned in 2006 and is being built using a USD $455 million loan from China’s EXIM bank. Much of the work was given to the China National Machinery Import & Export Corporation. While this creates debt and few jobs for Sri Lanka, it does provide vital electricity infrastructure.

“We want to give electricity to 100 percent of the households by 2012,” power minister Champika Patali Ranawaka said. “At the moment about 85 percent of the households have power.”

According to the website LBO, which has been thoroughly documenting energy issues, Sri Lankan power plants depend heavily on expensive liquid fuels (gas) causing the CEB to incur heavy losses.