16th September 2009, www.colombopage.com
Sri Lanka is planning to sign a commercial and power-purchasing agreement with India's National Thermal Power Corporation to build a $500 million coal power plant in the East.
The Power and Energy Ministry announced on Wednesday that it will sign the agreement next week to build the 1,000 MW, coal power plant in Trincomalee.
"We are going to sign the commercial and power-purchasing agreements next week with India's National Thermal Power Corporation," Reuters news agency quoted Power and Energy Minister, John Senaviratne.
According to the Ministry the project is to be carried out in two phases and the first is expected to be completed by 2012.
"Initially both parties will invest $75 million each and later $350 million will be invested by both parties," a Ministry statement said without elaborating the terms and conditions of the funding arrangement.