Sri Lanka in talks with China’s AIIB for US$220mn for power sector

Sri Lanka is discussing 220 million dollars in power sector financing with China’s Asian Infrastructure Investment Bank, Power and Energy Minister Kanchana Wijesekera said following a meeting with the lender and India’s National Thermal Power Corporation.

Sri Lanka’s state-run Ceylon Electricity Board and NPTC is building a 130 MegaWatt joint venture solar farm in Sampur, Trincomalee.

“AIIB officials at the meeting communicated the ability to finance” 200 million dollars for transmission & grid development 20 Million for project development, Minister Wijesekera said in a twitter.com message.

AIIB, set up as a multilateral lender is protected from a sovereign default, along with the World Bank and Asian Development Bank.

Sri Lanka is hoping to complete a default workout by September.

An energy permit for the first phase of the 130MW ground mounted solar park will be also be issued within a week, he said.

Sri Lanka’s President Maithripala Sirisena earlier cancelled 500 MW coal plant in Sampur shortly before equipment was set for international tender, de-stabilizing a generation plan of the agency.