ADB to provide $120m for sustainable power

The Asian Development Bank (ADB) will provide $120 million for the implementation of the Sustainable Power Sector Support Project in Sri Lanka in line with the Government's target of providing electricity to all households by the end of 2012.

From left, Infrastructure Specialist ADB Seiji Noda, Head Portfolio Management Unit ADB Candice Mc Deigan and Secretary Ministry of Finance and Planning Dr. P. B. Jayasundera at the signing of the agreement

The project will contribute to a reliable, adequate and affordable power supply for balanced and sustainable economic growth in Sri Lanka and increase the numbers of electricity connections in rural areas, specifically in the Eastern, North Central, Southern and Uva provinces.

The cost of the project is $ 162.03 million (Rs 17,553 million) of which $ 42.03 million (Rs 4,553 million) will be provided by the Government.

The loan from the ADB includes a loan of $ 10 million (Rs 1,083 million) from the Asian Development Fund and a loan of $ 110 million (Rs 11,917 million) from Ordinary Capital Resources.

Work to be carried out under this project include the construction of substations at Galle, Polonnaruwa, Vavunathivu and Moneragala; construction of transmission lines from Ambalangoda to Galle, Mahiyangana to Vavunativu (via Ampara), Moneragala to Madagama and stringing of second circuit of existing transmission line from Kotmale to Anuradhapura; improvement of the distribution system covering 486 rural electrification schemes to electrify about 12,190 households in 113 remote villages in Ampara district; strengthening the distribution system in Haldummulla, Diyatalawa and Koslanda areas in the Uva province; facilitation of private developers and plantation estates to rehabilitate and connect micro hydro plants to the main grid on net metering basis; installation of capacitor banks for transmission loss reduction at Aniyakanda, Ambalangoda and Katunayake substations; and the preparation of a detailed engineering design of 26.5 MW hydro power station at Moragolla in the Kandy district.

Financing of rehabilitation of the micro hydro power plants will be carried out through a credit line open to estate plantation companies and private sector developers who wish to connect their micro hydro power plants to the main grid on the basis of a net metering agreement. The Ceylon Electricity Board (CEB) and Sustainable Energy Authority (SEA), under the Ministry of Power and Energy will be the project implementing agencies. The project is scheduled to be completed by April 30, 2014.