Agreement for Sri Lanka's second coal power plant signed
Munza Mushtaq in Colombo,
December 29, 2006, 3.36 p.m..
A Memorandum of Agreement was signed between National Thermal Power
Corporation Ltd (NTPC)., (a Government of India Undertaking), Ceylon
Electricity Board (CEB) and Government of Sri Lanka today at the
Presidential Secretariat for setting up of a 500 MW coal based thermal
power plant at Trincomalee (eastern province).
The power plant is expected to commence operations from 2011. With the
signing of the Agreement will commence the process of site selection
in Trincomalee which will be done on the basis of techno-economic and
environmental feasibility studies and other relevant matters including
availability of infrastructure etc.
The project would involve an investment of US $ 500 million and would
be implemented by a joint venture company to be formed with a stake of
50% each by NTPC Ltd. and CEB. The project would be funded with a
debt equity ratio of 70:30. In January 2007, a joint venture agreement
between CEB and NTPC, a power purchase agreement between the JV
company and CEB, an agreement between BOI and the JV company,
implementation agreement and coal supply agreement are expected to be
The Memorandum of Agreement was signed by Mr. T Sankarlingam, CMD,
NTPC Ltd, Mr. MMC Ferdinando , Secretary Power and Mr. W.A.S. Perera,
Chairman CEB. Mr. Alok Prasad, High Commissioner, Mr. R V Shahi,
Secretary (Power), Government of India and other officials of NTPC and
the Indian High Commission were also present. The visiting Indian
delegation and High Commissioner of India, Mr. Alok Prasad, also
called on H.E. President Mahinda Rajapaksa at Temple Trees.
NTPC is a Government of India undertaking wherein Government owns
89.5% equity. NTPC is one of the top six companies by market
capitalization in India. The market capitalization of NTPC is
approximately US $ 25 billion. NTPC has been declared successively
for a continuous period of 3 years amongst the top three best places
to work in India . In the area of environment, all of NTPC plants are
accredited with ISO 14001 certification. NTPC is the second largest
owner of trees in the country after Government of India. NTPC, the
sixth largest power generator in the world, has an installed capacity
of 26,000 MW.
Published: Fri Dec 29 05:16:01 EST 2006