A US Dollar 600 million agreement was signed by the BOI with Lanka Alokha AB (Private) limited to set up a 488 MW gas Power Plant at Kerawalapitiya.
The Kerawalapitiya Power Plant is a project sponsored by Lanka Aloka AB (Pvt) Ltd with ARC Development International, Australia as the foreign investor, which is headed by Mr. Paul McMahon as Chairman.
The first stage of the project, which has been approved by the BOI, will have a value of US$ 600 million in Foreign Direct Investment. The project is for a 1000 MW power generation plant that is described as a Clean Development Mechanism (CDM) as defined in Article 12 of the Kyoto Protocol. The first stage of the 488 MW power plant is ready to commence construction. The new power plant will create 50 new skilled employment opportunities.
The plant will be using as feedstock Liquefied Natural Gas (LNG) which will be used for the first time in Sri Lanka. Gas is liquefied for ease of storage and transport and then regasified before it is actually used.
The other important aspect of LNG is that it is extremely environmentally friendly as it is odourless, colourless, and non-toxic and does not pollute land or water. Lanka Alokha will construct an LNG terminals, a regasification unit and storage facilities.
The Kerawalapitiya Power plant is to be located in the High Security Zone. Once it is operational it will become the cheapest power producer among Independent Power Projects (IPP) in operation under the CEB, offering the lowest price for power as of today. This would be a significant saving for the Ceylon Electricity Board as only the energy charge will be paid and there is no cost for the capacity charge.
Courtesy: Lankapuvath
Sat, Jan 24, 2009
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