Coal power to bring down electricity cost
[August 30, 2005 - 9.15 GMT]

The MoU to commission the Norochcholai coal power project was signed in China today. This coal power project will have a positive impact on Sri Lanka’s economy, as it would bring down the cost of electricity and reduce Sri Lanka’s dependency on diesel oil to generate electricity.

Presidents Chandrika Kumaratunga and Hu Jintao witnessed the signing in Beijing. Ceylon Electricity Board (CEB) Chairman Ranjit Fonseka and China National Machinery and Equipment Import and Export Corporation representative Xia Biao signed the MoU. 

Work is scheduled to begin in October this year; the Norochcholai project will have an overall beneficial impact on Sri Lanka’s power sector, adding 300 Mega Watts to the National Grid initially. This capacity is eventually estimated to rise to 900 MW.

The power plant will be built in three phrases on a site selected by the CEB at Norochcholai where a feasibility study has been carried out. The second and third phrases will get underway in 2011 and 2012 respectively.

It is anticipated that under a credit loan scheme the overall electricity charges will come down by as much as 13% in 2010, 22% in 2011 and 32% in 2012. 

The Norochcholai MoU is among several other agreements signed between the two governments in the key sectors of finance, tourism and culture.

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Last Updated Date: August 30, 2005 - 9.15 GMT