China Eximbank provides RMB 46.8 million loan for Kelanitissa Diesel Tank Storage Farm Expansion Project

Project narrative

On May 16, 2004, China Eximbank and the Ministry of Finance of the Government of Sri Lanka signed an RMB 46.8 million China Eximbank government concessional loan (GCL) agreement for the Kelanitissa Diesel Tank Storage Farm Expansion Project. The GCL carried the following borrowing terms: a 2% interest rate and a 12-year repayment period. The Ministry of Finance of the Government of Sri Lanka then used the proceeds from this China Eximbank GCL to on-lend at a 10% interest rate 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. As of 2008, the loan had disbursed RMB 33,267,913.49 (Rs. 518,700,000). The borrower made repayments worth RMB 3,265,360 (Rs. 70,983,355) in 2014, RMB 3,265,360 (Rs. 73,212,535) in 2015, RMB 3,265,360 in 2018, and RMB 3,265,360 in 2019. The loan's amount outstanding was RMB 20,155,622.12 (Rs. 422,602,929) as of December 31, 2013, RMB 16,276,908.45 (Rs. 345,150,216) as of December 31, 2014, RMB 13,368,825.20 (Rs. 289,773,297) as of December 31, 2015, RMB 6,530,721 as of December 31, 2017, RMB 3,265,361 as of December 31, 2018, and RMB 0 as of December 31, 2019. The project involved the construction of two diesel storage tanks of 10,000 MT each at the Kelanithissa Power Station. This project started on September 23, 2004. It was completed on October 31, 2005. The implementing agency is China Huanqiu Contracting & Engineering Corporation (中国寰球工程公司). The Kelanitissa Power Station, which was commissioned in 2003, is located on the south bank of the Kelani River in the northern part of the city of Colombo, Sri Lanka.