Govt.
signs landmark Norochcholai power plant agreement
[March 16, 2006 - 9.30 GMT]
The Government signed
a landmark agreement to construct the Norochcholai coal power plant
yesterday, at the Presidential Secretariat in Colombo in the presence of
President Mahinda Rajapaksa and State Councilor of the Chinese
Government Tang Jiaxuan.
China took this
decision, another landmark in historic Sino-Lanka ties, following a
discussion between President Mahinda Rajapaksa and visiting State
Councillor of the People's Republic of China, Tang Jiaxung. This is the
biggest development project so far undertaken by the UPFA Government.
The Government
also hopes to generate power at Rs. 5 per unit from the coal power plant
once construction is completed. At present it costs an average Rs. 12 to
generate electricity from oil-based power plants.
Under the
agreement the Chinese government will provide a soft loan of nearly Rs.
45 billion repayable within a period of 20 years at two percent annual
interest. The plant will be constructed at three separate stages of 300
MW each, and the first stage is expected to be completed by 2010 and the
final phase by 2012. Construction is set to begin within the next few
months.
The Government has
vouched to minimize the environmental damage from the project, that no
places of worship will be affected and to provide houses for the 74
families displaced by the project.
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Last Updated
Date: March 16, 2006 -9.30 GMT |
