Project ID: 33463

China Eximbank provides $155 million buyer’s credit loan for Phase I of the Puttalam/Norochcholai Coal Power Project (Linked to Project ID#33244 and #33452)

Commitment amount

$ 273332157.6

Constant 2017 USD

Summary

Funding agency [Type]

Export-Import Bank of China [State-owned Policy Bank]

Recipient

Sri Lanka

Sector

Energy (Code: 230)

Flow type

Export Buyer's Credit

Concessional

No

Category

Intent

Mixed (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

OOF-like (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Completion (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment year

2006

Implementation

2007

2007-07-23

Actual start

Completion

2011

2011-03-22

Actual

Geography

Description

On August 30, 2005, China Eximbank signed a $300 million preferential buyer’s credit (PBC) with with the Ministry of Finance of the Government of Sri Lanka for the Phase I of Puttalam/Norochcholai Coal Power Project. Then, on September 8, 2006, China Eximbank signed a $155 million buyer’s credit loan (BCL) with the Ministry of Finance of the Government of Sri Lanka for the Phase I of Puttalam/Norochcholai Coal Power Project (see Sri Lanka Department of External Resources 2009 Annual Performance Report). The PBC carries a 20 year maturity, 5 year grace period, and an interest rate of 2%. The BCL carries a 15 year maturity, a 5 year grace period, and a 6% interest rate. The PBC is captured in Project ID#33244. The Ministry of Finance of the Government of Sri Lanka then used the proceeds from the BCL and 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 installation of a 300MW coal power plant, a jetty for coal handling, and transmission lines from Norochcholai to Veyangoda and substation at Veyangoda. China Machinery Engineering Corporation (CMEC) was the contractor responsible for project implementation. A project inauguration ceremony took place on May 11, 2006. Phase I construction began on July 23, 2007. The first 300-megawatt phase was completed and ceremonially commissioned by President Mahinda Rajapaksa on March 22, 2011. For information on Phase II of the Puttalam/Norochcholai Coal Power Project, see Project ID #33452.

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

18

Number of unofficial sources

17

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Details

Cofinanced

No

Receiving agencies [Type]

Ceylon Electricity Board [State-owned Company]; Sri Lanka Ministry of Finance [Government Agency]

Implementing agencies [Type]

Ceylon Electricity Board [State-owned Company]; China Machinery Engineering Corporation (CMEC) [State-owned Company]; Sri Lanka Ministry of Finance [Government Agency]

Loan type

Non-Concessional

Maturity

15 years

Interest rate

6.0%

Grace period

5 years

Grant element

23.05221066%

Gurarantee provided

No

Insurance provided

No