CEB Green Power Development project to be co-financed by ADB & AFD

Monday, 10 October 2016 00:01 - - {{hitsCtrl.values.hits}}

The Ceylon Electricity Board (CEB) is to launch a development program to improve its transmission infrastructure and the efficiency of its medium voltage network with the help of the Asian Development Bank (ADB) and Agency France Development (AFD).

Following Cabinet approval, which was granted last week, the CEB will commence negotiations with ADB to finalise the terms for a loan facility to finance the project, said CEB spokesperson Sulakshana Jayawardana.

The ADB component of the co-financed project will amount to $ 150 million, payable in 20 years, while Agency France Development will provide a loan of $ 30 million. The Government is to contribute $ 80 million, which will be funded either by the Government or through CEB funds, Jayawardana explained.

“We will start negotiating with the ADB since we have got Cabinet approval. The CEB will be the signatory to the two bond agreements with the Government giving all guarantee facilities needed as per the loan conditions,” he said.

The project, titled ‘Green Power Development and Energy Improvement Investment Project – Tranche 2’ is set for completion in 2021, Jayawardana revealed. The project focuses on broadening electricity transmission infrastructure, increasing the efficiency of the medium voltage network and implementing demand-based electricity management through a pilot subproject in smart grid and metering.

One of the major components of the project will be to connect the wind power plant to the transmission system, Jayawardana said. The Nadukuda plant in Mannar will initially generate 100 MW, with plans to later increase it to 375 MW.

The loans will finance nine initiatives launched by the CEB under the project, including the construction of a new Polpitiya-Hambanthota transmission line with the development of the Hambanthota grid 220KV Substation, construction of the Padukka-Horana 132KV line and construction of the Colombo B 132/11kV grid substation.

“The transition lines of Kotugoda, Biyagama and Kolonnawa have issues with overloading. To minimise this we will make improvements to these lines under the project to increase capacity to deal with the demand and supply,” Jayawardana stated, adding that a grid substation in Biyagama would be constructed while augmentation of the Dehiwala and Madampe grid substations would also take place under this project.

The Cabinet will make its final decision on financing after negotiations with ADB and AFD are complete, he said. (CD)