Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Puttalam Coal Power ProjectThe objective of the project is togenerate 900MW and provide it tothe National Grid. The project wasoriginally planned for three Phases.Under Phase I of the Project a 300MWPower Plant together with a jettyfor coal handling, a transmission linefrom Norochcholai to Veyangoda anda substation at Veyangoda will beconstructed. In view of the urgency ofdeveloping low cost power, Phase II & IIIwill be implemented together as Phase II.Phase I is being implemented undera Preferential Buyer’s Credit Facilityof USD 300 million and a Buyer’sCredit Facility of USD 155 millionof the Export – Import (EXIM)Bank of China. The Government ofChina has extended a loan of USD891 million under the PreferentialBuyer’s Credit Facility of the EXIMBank of China to cover the full costof the Phase II.Rehabilitation ofWimalasurendra and NewLaxapana Power StationsThe New Laxapana andWimalasurendra Hydro PowerStations were built in 1974 and1965 respectively. Most of thepower plants are more than35 years old and mechanical,electrical equipment in thesepower stations have exceededtheir lifetime.The Government of Franceprovided a credit facility of USD55.2 million to rehabilitate thesetwo power stations. With therefurbishment, it is expected toincrease power generation of thetwo power stations by 28 percent,and also it will reduce the numberof failures and shut down timeof the power stations. At presentdesigns are being prepared toeffect the refurbishment.The governmenteffort to improvedisbursement hasled to the increaseof foreign financeutilization ratein 2010, as thehighest rate ofdisbursementduring the lastsix years.Chart 5.8 > Power & Energy Sector Projects as in 201019%3%78%Agreement Signed Ongoing Completed261