Home›Procurement News›India,Sri Lanka : $500 million coal power deal finalized by Sri Lanka and India
Procurement And Tender News
Tendersinfo keep you informed about the latest events in the national and international Procurement Industry. Procurement News provides in-depth coverage of the procurement industry, including contract awards, contract additions, new contract wins, mergers and acquisitions. Tendersinfo through its tender news section provides an update on all domestic and global tendering opportunities, invitation to bid & trade leads.
India,Sri Lanka : $500 million coal power deal finalized by Sri Lanka and India
Publish Date : 09-Oct-2013
After years of postponement, $512-Million joint venture coal-powered electricity plant in the island's former warzone is finalized by Sri Lanka and India.
The venture between the two South Asian neighbours will observe the building of two power generators of 250 megawatts each in Sri Lanka's north-eastern district of Trincomalee.
Sri Lanka's energy ministry said that the construction would start within a year and the plant will be connected to the national grid by 2018, providing cheaper electricity.
Sri Lanka at present depends on costly diesel powered plants to fulfill demand that cannot be satisfied by hydroelectricity.
The joint venture had been pending from 2005 because of "various issues", the ministry said, giving no further details.
Official sources said that there had been disagreement over financial issues, including tariffs. Details of the new agreement were not revealed.
The signing of the agreements was witnessed by Indian Foreign minister Salman Khurshid at President Mahinda Rajapakse's office in Colombo.
The power plant will be situated in a previous stronghold of the separatist Liberation Tigers of Tamil Eelam (LTTE), who were beaten in May 2009 after nearly four decades of fighting.
The Indo-Sri Lanka joint venture will be Sri Lanka's second coal-powered plant. In 2011, the government started the first plant, constructed with Chinese loans on the northwestern coast of the island.
Sri Lanka's electricity charges are among the highest in the world. Electricity request in the country is increasing sharply, with the island's economy recording growth rates of over 8.0 percent immediately after the end of conflicts.
