India-Japan link to set up LNG power plant in Sri Lanka
In a far reaching move to further strengthen relations with India, the government will go ahead with a 300 MW Liquefied Natural Gas (LNG) power plant in Kerawalapitiya with Indian and Japanese assistance, a senior official of the Ministry of Power and Renewable Energy told the Business Times.
The Cabinet Committee on Economic Management (CCEM) has been informed by the Ministry that Indian and Japanese parties involved in the venture will visit Sri Lanka soon to discuss and finalise the project.
India’s Petronet and a Japanese firm will form a joint venture to set up a US $250 million LNG import terminal at Kerawalapitiya near Colombo, he revealed.
The proposed LNG terminal will be built in two-and-half to three years, he said adding that the government‘s policy is not to have any more coal power plants.
The plant will be built on a 10 acre land. Meanwhile existing thermal power plants will be converted to LNG plants where feasible.
The Public Utilities Commission of Sri Lanka (PUCSL) also approved the project which will be implemented as a Build, Own, Operate and Transfer basis and it will be connected to the Kerawalapitiya Grid substation.
The Treasury granted Rs. 5 billion recently to the CEB for its activities relating to power supply in the country; Treasury Secretary Dr. R.H.S. Samaratunga informed the CCEM noting that the CEB needs expert knowledge. The CCEM has approved to obtain the advice from the International Finance Corporation (IFC) while endorsing the proposal to purchase two 60MW and 100 MW barge mounted emergency power plants to be used as backup power during emergency situations.
The Ministry of Finance has been entrusted with the task of auditing the commercial operations of the CEB. CCEM has granted approval to obtain proposals from KPMG and PWC to carry out this task.
The Ministry of Power and Renewable Energy and the CEB have been instructed to take immediate action to ensure an uninterrupted power supply in the country.