Sri Lankan government gives green light to sign JV agreement between India’s NTPC and Lanka’s CEB for LNG plant
The Cabinet of Ministers in Sri Lanka has reportedly granted approval for the signing of a joint venture agreement between India’s National Thermal Power Corporation (NTPC) and the Ceylon Electricity Board (CEB) to set up a liquid natural gas (LNG) power plant.
The government’s decision was announced by the Government Information Department.
Accordingly, NTPC and CEB are planning a 500 MegaWatt LNG plant in Kerawalapitiya in Sri Lanka’s Western Province.
The Department has stated that the draft shareholders agreements had been prepared following several working group meetings between the two agencies.
Also, the plant will be set up without open tender on a government-to-government basis.
Sri Lankan authorities are currently in negotiation on setting up a 500MW plant with Japan’s Sojitz Corporation, Mitsubishi and the CEB, and a 400 MW plant with China’s CMEC in Hambantota.
The proposed JVP between India and Sri Lanka on setting up an 500MW LNG power plant is an indication of the Sri Lankan government’s requirement of increasing the power generation programmes in the country. Sri Lanka is facing a looming power crisis due to the continuously growing demand and the shortage in supply. Therefore, Sri Lanka’s power sector has many investment opportunities through private sector or government to government joint ventures.
|Article Code :||VBS/AT/26092018/Z_2|