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US agrees grant for Sri Lanka power plant

30 July 2003 - The US government has provided a grant of $560 000 to fund a 300 MW coal-fired power plant in Sri Lanka, according to local news reports.

In January, the Sri Lankan government called for applications from interested parties to construct the coal power plant in Hambantota, in southern Sri Lanka. The project is estimated to cost about $600m. The government hopes to chose a winning bidder this month and work on the project is expected to start by the end of the year.

The money will be used to provide consultancy services for the project, according to the report. Electricity generated would be sold to the Ceylon Electricity Board.

Two thirds of Sri Lanka's electricity is generated from water and in recent years has experienced a severe drought resulting in lengthy power cuts.

The Sri Lankan government hopes electricity supply improvements will help boost the island's economy, devastated by a 19-year civil war which has killed 64 000 people.





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