USTDA Awards Grant for Development of 300 MW Power Plant in Sri Lanka

Released by tthe U.S. Trade and Development Agency

COLOMBO, SRI LANKA - (July 30, 2003) Yesterday, the U.S. Trade and Development Agency (USTDA) awarded a $560,000 grant to the Ministry of Finance of the Government of Sri Lanka (GOSL) to fund a technical assistance program on the development of a 300 MW coal fired power plant. Mr. James Enwistle, Deputy Chief of Mission at the U.S. Embassy in Sri Lanka, signed an agreement conferring the grant on behalf of the U.S. Government. Mr. C. Ratwatte, Secretary of the Ministry of Finance, signed on behalf of GOSL.

Recently, Sri Lanka has experienced extended periods of power blackouts due to a lack of power generation capacity. Although the country's installed generating capacity is substantially higher than peak power demands, it has been unable to keep up with the growing need for electricity. This is largely due to low rainfall levels during the last few monsoon seasons. Sri Lanka is vulnerable to power shortages because its power system is based largely on hydroelectric generation.

The Energy Supply Committee (ESC) is a special committee that was established by the Prime Minister of Sri Lanka to provide the country with much needed thermal power supply, diversify its generating mix and help to meet the country's growing demand for electricity. If implemented, the proposed power plant will be the first coal fired power plant in the country. It will be developed on a build, operate and own (BOO) basis. The USTDA-funded technical assistance will provide the Energy Supply Committee (ESC) of GOSL with a preliminary site evaluation, a plant design, and recommendations on the solicitation and award of a long-term power supply contract for the plant.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.