With the re-election of President Mahinda Rajapaksa, India’s largest power generator, NTPC, hopes to implement a 500-Mw imported coal-based power project in Sri Lanka by the end of this month (February).

“All formalities from our government and NTPC have been completed. The opinion of the Sri Lankan Attorney General (AG) was awaited. With the re-election of President Rajapaksa, the AG’s opinion will come soon, which will help both NTPC and Ceylon Electricity Board to start the project implementation by the end of the month,” NTPC sources said.

The way would soon be clear, reported Business Standard quoting the sources, for the joint venture agreement between CEB and NTPC, a power purchase agreement between the JV company and CEB, and an agreement between the Board of Investment and the JV company. An implementation agreement and a coal supply agreement would also be in place.

Though NTPC and CEB had signed a memorandum of understanding in 2006 for the project, both parties time to sort out various issues on the payment security mechanism and selection of project site. Each is to contribute half the equity. The project would be funded with a debt to equity ratio of 70:30.

According to sources, a site at Sampur, in Trincomalee district, has been selected. NTPC plans to import coal from Indonesia or South Africa for the proposed project, reported Business Standard.