CEB signs PPA for 350 MWLNG Power Plant
The CEB on 19 July 2021entered into a Power Purchase Agreement (PPA) with Sobadanavi Limited for a 350 MW LNG Combined Cycle Power Plant at Kerwalapitiya. This is the first agreement signed to construct a major power plant in the country after six years. The first stage of the power plant of 212 MW will be connected to the National Grid in early 2023 and the second stage, of 138 MW in early 2024.
The Power Plant is envisaged to run on Liquefied Natural Gas (LNG) once completed in early 2024. This project will bring US $ 225 million Foreign Direct Investment to the country and operate as an Independent Power Plant.
Proposals for the LNG Power Plant were invited in the latter part of 2016 but the procurement process could not be finalised due to many issues. However, after the election of the new government, under the leadership of President Gotabaya Rajapaksa, speedy and bold action were taken to resolve the issues and the procurement process was expedited enabling CEB to sign the PPA.