Lanka calls for revisions in Trincomalee project agreements

Sri Lanka has called for certain changes in the draft power purchase agreement  for the 2x250 MW coal-based Trincomalee power project.

This is in line with the recommendations of the Attorney General of Sri Lanka, who objected to the wordings of the PPA, to be signed by Ceylon Electricity Board and its proposed joint venture  with NTPC, even as the General gave the nod for execution of of all the implementation agreements.

This comes in contradiction to the consensus reached, in June 2010, between the partners of the project-- NTPC and CEB-- on a series of issues that have been hampering the Trincomalee project for quite some time now.

Draft versions of the agreements, namely the joint venture agreement between NTPC and CEB, PPA between JV company and CEB, implementation agreement between the Sri Lankan government and JV company for infrastructure support to the project and Board of Investment Agreement, were finalized by the two partners over the visit of NTPC-officials to Sri Lanka and, subsequently, put up for the approval of the concerned authorities in both countries.

Due to this delay in finalization of these agreements, the term of the Memorandum of Agreement, signed between the two power utilities and Government of Sri Lanka for the execution of the power project, has again expired on December 31.