|
|
|
  |
| Sunday, 1 May 2005 |
 |
|
 |
News |  |
| News Business Features Editorial
|
Chinese power project on favourable terms by Rashomi Silva The Chinese government has offered to assist the Sri Lankan power sector to introduce least cost generation option to save the country from the present crisis. According to the terms of the Chinese government venture it will be on a government to government basis and on very favourable terms a senior CEB official said. The loan offered would be on 'soft term' conditions under which the country will get a 10-year initial grace period. During this period power generating cost would be Rs. 4.20 as oppose to the present generating cost of Rs. 11. The feasibility study on the project was carried out and Norochcholai turned out to be a suitable location. "There is no need to repeat the study but we may need to carry out small studies to fall in line with the proposals that will be forwarded by China, the CEB chairman Ananda Gunasekara said. Gunasekara speaking in positive terms about the future of the project said they do not expect severe opposition this time and was optimistic that the project would finally take off. The project faced much opposition from different quarters ranging from environmentalists to the Catholic church and dragged on for more than ten years. "There may be opposition but we do not expect as strong opposition as we had to face in the previous occasions," Gunasekara said. However Chilaw Bishop Frank Marcus Fernando refused to comment on the issue. Over 65 percent of electricity in Sri Lanka is generated using diesel where as India uses coal for over 80 percent of their power generation. "Delaying of the coal power project costs the country Rs.35 million per day," a senior official said. |
|
| News | Business | Features
| Editorial | Security
| Produced by Lake House |
