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Coal power plant awaits Govt. approval

The coal fire power plant will be a reality by 2006 if the Government gives the green light for the proposal tomorrow, assured Philip Canham, Project Director Barclay Mowlem Consortium (BMC) Australia.

"We are confounded by the lack of decision-making ability of the Government from which we are seeking some commitment. This is yet to come," he said.

Tracing the company's history with the Sri Lankan government, Canham said that under the government's intention to set up a coal-fired power station, BMC was invited after the government called for Expressions of Interest in 1992.

Due to the escalation of terrorist activities in Trincomalee where the power station was to be developed, in 1996 the government was compelled to suspend construction.

During this time, the site was also shifted to Norochcholai and Matara. Since there was no alternate sites earmarked at that time, the proposal was kept aside until 2001.

After BMC identified suitable sites within the Hambantota district, the Ministry of Southern Region Development invited the BMC in May 2002 to make a presentation to develop the power station at the selected site. As a result, the energy supply committee, appointed by an act of parliament, invited the BMC for discussions on the proposed development on January 3, 2003.

Canham said the estimated cost of the project is US$ 400 million in the first stage and US$ 250 million in the second stage. It will be funded entirely by BMC. As funds will be provided by private investors, the government need not borrow any funds from international sources, which, he said, is a great relief for the government.

He said the first stage of construction of the plant will be completed in 36 months to generate 300MW of power while another 600MW is proposed to be added under stages two and three. The second stage will be completed in 2008 while the third stage will be completed in 2010. The plant is based on state-of-the-art coal technology and will be operated on low sulphur washed Australian export quality coal.

Speaking of employment prospects, Canham said that during construction, the plant will generate employment for over 10,000 while 2500 jobs will be generated after the commissioning of the project.

The Consortium, led by BMC which specialises in coal power plants, includes Pacific Power International, the engineer of the project, and Sumitomo Corporation of Japan, which provides equipment, supply and installation. BMC has built thermal power plants in Australia, Thailand, Hong Kong, Indonesia, Vietnam and Malaysia.

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