China Eximbank provides $891 million preferential buyer’s credit for Phase II of the Puttalam/Norochcholai Coal Power Project (Linked to Project ID #33244 and #33463)

On December 25, 2009, China Eximbank signed a $891 million preferential buyer’s credit (PBC) agreement with the Ministry of Finance of the Government of Sri Lanka for the Phase II of Puttalam/Norochcholai Coal Power Project. The PBC carries a 20 year maturity, 5 year grace period, an interest rate of 2%, a 0.5% commitment fee, and a 0.5% management fee. The Ministry of Finance of the Government of Sri Lanka then used the proceeds from the PBC to on-lend to Ceylon Electricity Board (CEB), which is a state-owned electricity company that controls all major functions of electricity generation, transmission, distribution and retailing in Sri Lanka. This project involved the establishment of two power plants with a capacity of 300MW, a transmission line from Norochcholai to Anuradhapura, new substations at Chilaw and Anuradhapura and the construction of the expansion of coal handling port facilities and employees' housing. China Machinery Engineering Corporation was the contractor responsible for project implementation and its work was overseen by the CEB. Phase I of this project ran from 2007 to 2011 (see Project ID#33244 and #33463). The groundbreaking ceremony for Phase II of this project took place on March 18, 2010. The project was completed on September 16, 2014.

Additional details

The Chinese project title is 普特拉姆燃煤电站. This Puttalam/Norochcholai power plant is sometimes referred to as the Lakvijaya power plant.

Number of official sources

27

Number of unofficial sources

7