Cabinet Approves Second Phase Of Coal Plant Project

The cabinet of ministers last week approved US $ 891 million loan from
China’s Export-Import Bank (Exim) to fund the Puttalam Coal Power Project – Phase II.
The total cost of the project is US$ 891 million.

“First phase of the project is being implemented successfully with financial assistance from the Exim Bank of China under a Preferential Buyer’s Credit Loans  of US$ 300 million and a Buyer’s Credit Loan of  US$155 million,” the government said in a statement.

Under the Phase I of the project a 300MW power plant together with a jetty for coal handling, a transmission line from Norochcholai to Veyangoda and substation at Veyangoda is to be constructed.

Phase I is scheduled to be completed end next year.