Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 31 Jul 2006
PDS Updated as of 31 Aug 2006

Country Sri Lanka
Project/Program Number 34912-014
Status Approved
Geographical Location Sri Lanka
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Energy
/ Conventional energy generation
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories

Project Sponsors

AES Kelanitissa (Private )Limited
Hayleys Limited


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7167/1815Political Risk Guarantee31,000
PS7167/1815Private Sector Loan26,000
TOTAL US$ 57,000

Summary of Environmental and Social Issues

The overall environmental impacts of construction and operation of the power plant will not be significant. The environmental impacts during construction will primarily be from noise and dust. The potential impacts during operation will be noise from generators and cooling towers, risk from oil spill and fire, and air pollution from flue gas emissions (specifically sulfur dioxide and nitrogen dioxide).

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

A program of public consultation was designed early in the environmental impact assessment (EIA) process and a public consultation and disclosure plan was produced and agreed with Ceylon Electrification Authority (CEA). Consultations have been undertaken with stakeholders including government, nongovernment, and community-based organizations.

During Project Design
During Project Implementation


The Project is to build, own, operate, and transfer a 163 MW diesel-based combined-cycle power generating plant at a cost of $104 million under a 20-year concession agreement with the Government of Sri Lanka (GOSL). The plant is located within Ceylon Electricity Board's (CEB) existing Kelanitissa power station premises in the northern part of Colombo. CEB will purchase the capacity and energy output of the Project under a 20-year Power Purchase Agreement (PPA). The GOSL will guarantee the payment obligations of CEB under the PPA.1

Objectives and Scope

The Project will add significant new energy efficient generation capacity immediately to the CEB system to minimize the cost of power shortages. By helping to minimize Sri Lanka's reliance on hydropower, it will stabilize Sri Lanka's power supply capability in a manner consistent with the low cost energy options identified by the GOSL. Finally, because the Project attracts private capital to the power sector, it frees up GOSL funds to meet other pressing financing requirements in the social sectors.

Project Rationale and Linkage to Country/Regional Strategy

ADB's country operational strategy in Sri Lanka is to support projects that will accelerate economic growth to reduce poverty and increase employment opportunities. The Project will promote ADB's economic growth objective by supporting policy and institutional reforms that encourage private sector development and improve public sector management in the sector, and thus augment Sri Lanka's infrastructure capacity. The development of a more affordable and widely available electricity supply is an important infrastructure service required to improve living standards and support balanced regional economic growth.

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
The Project has stabilized Sri Lanka's power supply capability as demand for electricity has increased over the years.
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices


Concept Clearance 14 Jun 2000
Fact-finding 15 Aug 2000 to 17 Aug 2000
Management Review Meeting 15 Nov 2000
Approval 19 Dec 2000
Last Review Mission 31 Oct 2000 to 02 Nov 2000


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Private Sector 7167 19 Dec 2000 15 Jun 2001 15 Jun 2001 15 Dec 2003

Contacts and Update Details

Responsible ADB Officer Ma. Carmela D. Locsin (
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Private Sector Investment Funds & Special Initiatives Div
Executing Agencies


Project Website
List of Project Documents