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Sri Lanka to borrow funds for Phase II Norochcholai power plant
20 November 2009: Sri Lanka Government is likely to borrow $ 891 million (approx Rs 4,143.15 crore) from the Exim Bank of China to finance the Phase II of the Norochcholai Coal Power Plant Project in Puttalam District.
The proceeds of the credit facility are likely to 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 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.
The $455 million (approx Rs 2,115.75 crore) Phase I of the project is nearing completion successfully with the financial assistance from the Exim Bank of China under a Preferential Buyer's Credit Loans of $ 300 million (approx Rs 1,395 crore) and a Buyer's Credit Loan of $155 million (approx Rs 720.75 crore).
Phase I is 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.
Source: Colombo Page