Mar 19, 2010 (LBO) - Sri Lanka's president Mahinda Rajapaksa has launched the second stage of a coal power complex built with Chinese financing which will add another 600 MegaWatt, the president's office said. China became top lender to commit funds to Sri Lanka is 2009 accounting for 1.2 billion US dollars. The first 300Mega Watt plant is now nearing completion. The complex is being built by China National Machinery & Equipment Import & Export Corporation (CMEC) on a design built and transfer contract.
It is financed with a credit from the Export Import Bank of China. The first stage cost 455 million US dollars and the second stage with two 300 MegaWatt plants is estimated at 891 million US dollars.
Sri Lanka's state-run Ceylon Electricity Board has an exceptionally high proportion of expensive liquid fuel plants including gas turbines for base load supply, which has made power expensive and saddled the utility with losses.
