NTPC forms joint venture in Sri Lanka for coal-based power project
27 Sep 2011
National Thermal power Corporation Ltd (NTPC) has formed a 50:50 joint venture company with Ceylon Electricity Board, Sri Lanka, for setting up a 500 MW (2x250 MW) coal-fired power project in the Trinomalee region of Sri Lanka.
Incorporated as `Trinomalee Power Company Limited' yesterday, the $700-million project is also NTPC's first overseas venture.
The joint venture company will shortly sign other agreements, including power purchase agreement with CEB, investment agreement with the Board of Investment and implementation agreement with the Government of Sri Lanka.
NTPC said it has already finalised these agreements. The project is expected to achieve financial closure in about a year.
Arup Roy Choudhary, chairman and managing director of NTPC and Prof Wimaladharama Abeywickreme, chairman of CEB, signed the joint venture agreement.
The project will be funded by a concessional line of credit of $200 million from India. The line of credit will also help fund the construction of a jetty at Sampur and transmission lines from Sampur to Habarana.