Cabinet approves two mega power projects

The Cabinet has approved two mega power projects costing more than US$ 500 million in a bid to overcome a shortfall of power supplies.

One of them is an LNG project and other is the required floating deck, pipeline and storage facility due to be set up in Kerawalapitiya off Wattala . The construction is expected to be completed in three years.

Power and Energy Minister Mahinda Amaraweera told the Sunday Times that worldwide tenders would be called for the power projects approved by the Cabinet.

The LNG project is aimed at producing 300 Mw and expected to cost around US$ 230-250 million. It will be constructed on a BOT ( Build, Operate and Transfer) basis in 20 years.

He said 100 percent funding should be brought by the investor.

The second project is expected to cost US$ 330 million. It involves the construction of a pipeline from the Colombo harbour to Kerawalapitiya at a cost of US$ 50 million and the floating deck and the storage tank costing US$ 280 million.

The proposal was made on the basis of Build, own, Operate and Transfer (BOOT).

However, after discussion at the Cabinet it was decided to change the terms where the government would have a major share holding.

“This was done to prevent a foreign company having a monopoly over the power supplies in Sri Lanka,” a senior official explained .

It was also decided that the Ceylon Petroleum Corporation and the Ceylon Electricity Board would have control of the construction of the storage tank, the pipeline and the floating deck.