Sovereign immunity waiver hampers Trincomalee project

Sri Lanka's requirement of sovereign immunity waiver has a created a major hurdle for the proposed Trincomalee project.

The Joint Venture Agreement, Power Purchase Agreement and Implementation Agreement pertaining to the NTPC-Ceylon Electricity Board JV Power Project in Trincomalee, Sri Lank had been finalized.

But the issue in the IA pertaining to "Waiver of Sovereign Immunity by GoSL" remained unresolved as NTPC was unwilling to compromise on the Immunity Clause, which it feels is vital for the enforcement of the IA.

The NTPC has now sought the Ministry of External Affairs to intervene in the signing of the project agreements.

In a last-ditch effort to save the deal, NTPC made an alternate draft for the Immunity Clause, which it has submitted to the Indian High Commission in Colombo and the AG office. It still awaits the Sri Lankan sides decision on the matter.