ADB aid for Moragolla power project

Indunil HEWAGE

The construction of the 30 megawatts Moragolla hydropower project is expected to begin in 2014.

A feasibility study pertaining to the power plant construction has already been completed and detailed design of the plant is to be made shortly.

A Power and Energy Ministry senior official told Daily News Business that funding of the Moragolla hydropower project will come as a loan from Asian Development Bank and the total cost of the project will be around US $ 90 million.

"However, we believe the ADB will provide around US $ 70 million and the balance will have to obtained through core financing," he said.

Plans are on to commence another 49 megawatts Broadlands hydropower project with financial assistance of Industrial and Commercial Bank of China and the People's Bank.

The total investment of the entire power project is presumed to be over US $ 82 million and 85 percent of the cost is expected to be covered by China Bank and while the rest is to be provided by People's Bank.

At present the loan agreements has been submitted for Attorney-General's approval and once it is approved the contract will be effective. Commenting on the delayed 1000 megawatts Sampur coal power project he said, they are still at discussion level and have submitted the agreements pertaining to the project and are nearing the agreement finalization process.

The Sampur power project will be a joint venture on a 50-50 equity partnership basis between the Ceylon Electricity Board and National Thermal Power Corporation of India. [email protected]