Malaysian - Bahraini Joint Venture for a US$ 230mn Waste to Energy Plant in Sri Lanka

25th March 2010, www.dailynews.lk

The BOI signed an agreement worth US$ 230 million with the Malaysian-Bahraini joint venture Orizon Renewable Energy Private Ltd to build a waste to energy plant. The plant will be built on a 20-acre land at Kahatamedawelyaya, Muthurajawela, in the Gampaha District.

The project agreement was signed by BOI Board Members Channa Palansuriya and Upali Samaraweera, Environmental Affairs and Natural Resources Ministry Secretary Jayathilake and Octogon Consolidated Berhad Executive Director and Orizon Renewable Energy Private Limited Siti Fatima Mohamed Shariff.

The project involves several phases. It will first engage in the rehabilitation of the existing Bloemendhal dumpsite.

In addition the project also involves the construction and operation of a new landfill for fresh water wastes from Colombo and the Western Province.

The most important phase is the construction of a waste to energy plant that will completely destroy up to 1,300 tonnes a day of solid waste. Also important is that it will generate 56 Megawatts of power, and export about 45 MW to the net power grid.

The main attraction to the public and to the country is that the wastes will be completely destroyed without causing pollution or gas emissions. It will also ensure that no more lands will be allocated to landfills.

Another dimension is the reduction of health risks as many diseases, such as dengue, have spread as a result of mosquitoes breeding in landfills and other areas where waste is deposited.

The BOI is keen to have promoted this project since in addition to the abovementioned benefits to the country, it has created many opportunities for the training of skilled local workers. Since this is a new area that has not existed in Sri Lanka, it will result in a certain quantum of technology transfers to local communities.

BOI Deputy Director General A.M.C. Kulasekera said that the BOI has taken the lead role in establishing this project but the stakeholder agencies such as the Environment and Natural Resources Ministry, the Sustainable Energy Authority, the Public Utilities Commission and the Land Reclamation Authority also contributed immensely towards its implementation. "The key to success is team work involving all stakeholder agencies," he said.

Orizon Renewable Energy Chairman Siti Fatima Mohamed Shariff, said that the project was very significant as it will add 55 MW to the National Grid.