China is to commence a 35 MW broad lands Hydro Power Project over the Kelani River located in the Central and Sabaragamuwa provinces.

The project will be built by China National Electric Equipment Corporation and this will add 35 MW power to the national grid, upon completion of the project by 2014.

The cost of the project will be 82 million U.S. Dollars. 90% of the cost of the project will be financed by the Industrial and Construction Bank of China on a 15-year floating rate loan with a grace period of 3 years. The balance 10 percent of funds required will be financed by the People's Bank.

The scope of work to be carried out by the Chinese contractor includes civil, mechanical and electrical works associated with the dams, hydraulic structures, tunnels, power house, switch yard, transmission line as well as access road improvement and new constructions.

The civil construction work include a 24m high 114m long concrete gravity dam across Maskeli Oya at Polpitiya. A 19 m high 48 m long concrete gravity diversion barrier across Kehelgamu Oya at Polpitiya, approximately 3.5 km long waterway comprising a cut & cover section, tunnel, penstock and surge chamber.

Also, approximately 850m long, 2.7m diameter diversion tunnel from Kehelgamu Oya diversion barrier to Main dam on Maskeli Oya, surface power station housing two 17.5 MW turbine generator units along with associated auxiliary & ancillary systems, outdoor switch yard and 132kV double circuit 4 km overhead transmission line to the existing Polpitiya switch yard, slope strengthening works at the adjoining Polpitiya power station and surrounding areas will be included to civil constructions.