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Power crisis: Government turns to natural gas

by Ranil Wijayapala

The Government will decide on the implementation of key power generation projects using natural gas with the involvement of foreign investors within the next week, Land, Irrigation and Power Minister and Deputy Defence Minister General Anuruddha Ratwatte said.

The Minister said a Cabinet Sub Committee appointed to evaluate the proposals by several foreign companies to install these power plants will decide on a suitable company.

Companies from Australia, Middle East and Malaysia are among those who had forwarded their proposals for Government's consideration.

Minister Ratwatte added that an Australian company has agreed to install 350 MW natural gas power plants with a installed capacity of 1050 MW within a nine year period.

According to their proposals the whole project will be completed in three phases with the commissioning of the first phase within three years.

The Company has also agreed to convert the Ceylon Electricity Board (CEB's) existing thermal power plants also into natural gas power plants under the same project, the Minister added.

He said the Government is also negotiating with donor countries in the West to implement the 150 MW Upper Kotmale hydro power station which was suspended due to environmental problems.

Since the project has been given environmental clearance a Canadian agency has come forward to fund this project and the Government is negotiating with them to implement this project soon, the Minister added.

Minister Ratwatte also said that Government is also considering the feasibility of recommencing the Norochcholai power plant by obtaining necessary funds from a donor country. The Japanese loan approved for the project was withdrawn due to mounting resistance towards the project from various organisations.

The Japanese donors have informed the Government that they will reconsider the funding of the project only in the year 2003, the Minister added.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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