• This is the first agreement signed for construction of a major power plant after 6 years

By Sandun A. Jayasekera

The CEB has entered into a Power Purchase Agreement (PPA) with Sobadanavi Limited for a 350 MW, LNG (Liquefied Natural Gas) Combined Cycle Power Plant at Kerwalapitiya last week (19th July), the Daily Mirror learns. 

This is the first agreement signed for construction of a major power plant in the country after 6 years.
The first stage of the power plant of 212 MW will be connected to the National Grid in early 2023 and the second stage of 138 MW in early 2024. The Power Plant is envisaged to run on LNG once completed in early 2024. This project will bring US $ 225 million (Rs. 45 billion approximately) Foreign Direct Investment (FDI) to the country and operates as an Independent Power Plant.

Proposals for the above LNG Power Plant were invited in the latter part of the year 2016 but the procurement process could not be finalised due to many issues. However after the election of the new government, under the leadership and guidance of President Gotabaya Rajapaksa, speedy and bold action were taken to resolve the issues and expedite the procurement process enabling CEB to sign the PPA.

• Proposals for the above LNG Power Plant were invited in the latter part of the year 2016 but the procurement process could not be finalised due to many issues