COLOMBO, Mar 15, 2006 -- AFX News - Asia

 

Sri Lanka has awarded a contract to China National Machinery and Equipment Corp to build and operate a 450 mln usd coal-fired power plant, the finance ministry said.

The treasury entered into the deal yesterday with the Chinese firm to generate 300 megawatts at a location along the island's northwestern coast, the ministry said.

It said the plant is expected to be commissioned in about four years.

The plant and supporting infrastructure will be entirely funded by the Chinese government, Ranjith Fonseka, general manager for the state-run Ceylon Electricity Board, said.

Sri Lanka's electricity demand is growing at 8.0 pct a year with tariffs among the highest in Asia.

aj/bmm/net

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