A ¥1.2bn (approximately US$11mn) buyer's credit has been raised for Ceylon Electricity Board (CEB) of Sri Lanka to purchase power generators, turbines and other machinery to support the rehabilitation of a power station.
The credit agreement is being provided by co-financiers Japan Bank for International Cooperation (JBIC) and Citibank Japan, and the facility was signed with the government of the democratic socialist republic of Sri Lanka.
Mitsubishi Electric Corporation and Mitsubishi Heavy Industries are providing the equipment exports in support of the Ukuwela power station, located in the central province of Sri Lanka.
This buyer's credit is the first of its kind to be lent to Sri Lanka in over 20 years.
The project aims to ensure the country maintains a steady stable power supply, particularly in light of the sharp increase in power demand driven by the 6.3% economic growth seen in Sri Lanka in recent years.
The Ukuwela power station was built in 1976, but has fallen into disrepair, and is thus faced with an increasing risk of breakdown and suspension of operations.
Last Updated February 15, 2008
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