Annual Report 2008 - Ministry of Finance and Planning

5. Foreign Financing of the Budget
216
Box 5.3
Development Assistance from Bilateral Eastern Countries Contd.
Puttlam Coal Power Plant Project
The objective of the project is to build a coal power plant
to meet the growing electricity demand in the country at
a minimum cost. The power plant will be built in three
phases of 300 MW capacities each and the total capacity of
the power plant will be 900 MW. The Government of China
through the Exim Bank of China has extended a loan of US$
455mn for the implementation of the 1st Phase of the project.
The 1st Phase includes installation of a 300 MW coal power,
1.2km of Coal unloading Jetty with Conveyor Belt, 115km
of 220k V Power Transmission line from Norochcholai to
Veyangoda, all auxiliary equipment/system for generation of
300MW power and building a coal yard including common
facilities and other ancillary requirements. It is expected to
complete Phase I of the project in 2012 and Phase 2 and 3
in 2013.
for Hambantota and Monaragala districts. The project
includes construction of 2 dams at Puhulpola and Dyraba in
Welimada, a 23 km long transbasin tunnel, an underground
power house with an annual power output in the range of
312 GWH. The Government of Iran has agreed to provide
a loan not exceeding US$ 450 million through the Export
Development Bank of Iran (EDBI) to finance the Uma Oya
Hydro Electric and Irrigation project. The total cost of the
project is US$ 529 mn. The Iranian loan will cover 85% of the
project cost and the Government of Sri Lanka will finance
the balance 15%. The project will commence in 2009.
During the state visit of the President of the Islamic Republic
of Iran to Sri-Lanka the loan agreement for the Uma Oya
Hydro Electric & Irrigation Project and a MOU for Housing
project were signed.
Uma Oya Hydro Electric and Irrigation Project
The objective of Uma Oya Hydro Electric & Irrigation Project
is to provide 100-150 MW hydro power and irrigated water
for 4000-5000 hectares of dry lands and drinking water
Possibility of providing Iranian assistance for the
Sapugaskanda Oil Refinery Expansion and Modernisation
(SOREM) Project was also discussed during this visit.
Table 5.8
Under-performed projects in 2008
Donor
Name of the Project
Loan
Amount
US$ mn
Disbursement
Target 2008
US$ mn
Not
Utilized
in 2008
US$ mn
Reasons for variations and Current
status
Due to heavy cost overrun, the
supplementary loan was also not adequate.
Therefore, additional funding amounting
to US$ 45.58 is required for Polonnaruwa,
Muttur water schemes and construction of
Hambantota Salinity Barrier.
Secondary Towns
Rural Community
Based Water Supply &
Sanitation Project
120.0 21.0 20.0
ADB
Technical Education
Development Project
21.0 5.0 3.0
Delays in finalization of Diploma and
Degree programs.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008