Sri Lankan government approves project agreement for construction of 300MW LNG power plant
Sri Lanka’s Cabinet of Ministers has reportedly approved the amended version of the project agreement by the Ceylon Electricity Board (CEB) and Lakdhanavi Ltd. for the construction of a 300 MW LNG (liquefied natural gas) power plant. Construction work is to commence this month.
Accordingly, the Power Ministry is expected to begin construction immediately, The Morning has reported.
In February this year, the government of Sri Lanka had awarded the contract to construct the second phase of the 300 MW LNG power plant in Kerawalapitiya to Lakdhanavi Ltd., overturning a cabinet decision of the previous government made just over a year prior.
The approval, as reported by The Morning, is conditional upon Lakdhanavi’s withdrawal of a petition filed at the Supreme Court (SC) against the contract being originally awarded to a Chinese company, GCL China Windforce and RenewGen.
When contacted by The Morning, Sri Lanka’s Minister of Power Dullas Alahapperuma has said the cabinet approval this time was conditional – it was given on condition that Lakdhanavi Ltd. withdraws the court case.
The construction of the power plant is to be launched on November 17th to mark the President’s first anniversary since assuming office.
OSL take:
Sri Lanka’s power sector is a constantly expanding sector that has opened up many business/investment opportunities. Sri Lanka’s increasing demand for power has resulted in the government of Sri Lanka exploring solutions address the situation. Power authorities are focused on implementing renewable energy generation projects. Sri Lanka’s President has also expressed the need to increase the country’s renewable energy generation projects in the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s power sector.
| Article Code : | VBS/AT/13112020/Z_7 |