Sri Lanka awards energy projects to India after canceling tender won by China
Initially financed by an Asian Development Bank (ADB) loan, the project had been put on hold two years ago due to India's apprehensions regarding China's participation.
NEW DELHI: Sri Lanka has awarded a contract for the construction of three solar and wind hybrid power generation facilities to an Indian company, following the cancellation of a tender previously won by a Chinese firm.
Initially financed by an Asian Development Bank (ADB) loan, the project had been put on hold two years ago due to India’s apprehensions regarding China’s participation.
Sri Lanka’s energy ministry announced on Friday that the project has been revived and is now entirely funded by an $11 million grant from the Indian government. The contract for building the facilities has been awarded to U-Solar, a renewables firm based in Bengaluru, India.
According to a statement from the Indian embassy, India’s assistance “underscored the significance New Delhi attached to bilateral energy partnership”.
The three facilities, with a combined renewable energy capacity of 2,230 kilowatts, will be situated on islets near the northern city of Jaffna, not far from India’s southern coast.
Sri Lanka is currently recovering from its worst economic crisis since gaining independence from Britain in 1948. Beijing is Sri Lanka’s largest bilateral creditor, contributing to approximately 10 percent of the island nation’s $46 billion foreign debt during the government default at the height of the crisis in 2022.
