Kerawalapitiya power plant to net $ 600m in FDI
A US$ 600 million agreement was signed by the BOI with Lanka Alokha
AB (Pvt) Ltd. to set up a 488 MW gas power plant at Kerawalapitiya.
Dhammika Perera, Chairman/ Director General of the BOI and H.M.
Nawaratne, Director, Lanka Alokha AB (Pvt) Ltd signed the BOI
Certificate of Registrations.
Minister of Enterprise Development and Investment Promotion and
Minister of Mass Media and Information Anura Priyadharshana Yapa
presented the BOI Agreement to the investor.
The Kerawalapitiya power plant is sponsored by Lanka Aloka AB (Pvt)
Ltd with ARC Development International, Australia as the foreign
investor, which is headed by Paul McMahon as Chairman.
The first stage of the project, which has been approved by the BOI,
will bring US$ 600 million in Foreign Direct Investment. The project is
for a 1000 MW power generation plant that is described as a Clean
Development Mechanism (CDM) as defined in Article 12 of the Kyoto
Protocol. The first stage of the 488 MW power plant is ready to commence
construction. The power plant will create 50 new skilled employment
opportunities.
The plant will use feedstock Liquefied Natural Gas for the first time
in Sri Lanka. Gas is liquefied to ease storage and transport and then
regasified before it is actually used. When the process of liquefaction
is effected dust, water and heavy carbons are removed.
LNG is extremely environment friendly as it is odourless, colourless,
and non-toxic and does not pollute land or water. Lanka Alokha will
construct an LNG terminal, a regasification unit and storage facilities.
The Kerawalapitiya power plant is in the High Security Zone. Once it
is operational it will become the cheapest power producer among
Independent Power Projects (IPPs) in operation under the CEB, offering
the lowest price for power. This would be a significant saving for the
Ceylon Electricity Board as only the energy charge will be paid and
there is no cost for the capacity charge. |