CEB enters PPA for 350 MW LNG Power Plant

The CEB has entered into a Power Purchase Agreement (PA) with Sobadanavi Limited for a 350 MW LNG Combined Cycle Power Plant at Kerwalapitiya on 19th of July 2021. This is the first agreement signed for a construction of a major power plant in the country after six years. The first stage of the power plant of 212 MW will be connected to the National Grid in early 2023 and the second stage of 138 MW in early 2024. The W Power Plant is envisaged to run on Liquefied Natural Gas (LNG) once completed in early 2024. This project will bring US $ 225 million Foreign Direct Investment to the country and operate as an Independent Power Plant.

Proposals for the above LNG Power Plant were invited in the latter part of the year 2016 but the procurement process could not be finalized due to many issues. However after the election of the new government, under the leadership and guidance of H.B. President Gotabaya Rajapaksa, speedy and bold actions were taken to resolve the issues and expedited the procurement process enabling CEB to sign the PPA.

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