Colombo, Dec 19 (NationPress) The Asian Development Bank (ADB) has formalized an agreement with the Ceylon Electricity Board (CEB) on Thursday to allocate $150 million for critical transmission projects in Sri Lanka, as stated by CEB.

According to CEB, ADB granted approval for the loan in November 2024 after thorough assessments of the technical, economic, and social advantages of the proposed investment projects.

These funds will facilitate the execution of several vital initiatives within the long-term transmission strategy from 2025 to 2027, enhancing the overall reliability and stability of the power grid, as noted by CEB.

The transmission assets financed by this loan will support the integration of significant renewable energy developments into the national grid. The funding will aid in the establishment of six new grid substations, the construction of 87 km of 132 kV transmission lines, the building of 45 km of 220 kV transmission lines, and the enhancement of two existing grid substations, according to CEB, as reported by Xinhua news agency.

CEB and its distribution arm Lanka Electricity Company (LECO) cater to over 7.5 million electricity customers via a transmission network consisting of 3,400 km of high voltage lines and 90 grid substations, per CEB.

Recently, the Sri Lankan cabinet approved a proposal for signing two agreements with ADB aimed at fortifying its power system and facilitating the integration of renewable energy projects, according to a statement from the government's information department.

The president of the country, Anura Kumara Dissanayake, submitted this proposal in his role as Minister of Finance, Planning and Economic Development.

The ADB has agreed to provide $200 million in two separate loans — $150 million and $50 million — to Ceylon Electricity Board and Lanka Electricity (Pvt) Ltd. under two treasury guarantee agreements, as stated by the department.

In September, the Sri Lankan government also approved a proposal to attract investors through a competitive bidding process for the development of floating solar power plants in three major reservoirs.

The three identified reservoirs — Randenigala, Moragahakanda, and Kalawewa — have been earmarked by the Sri Lanka Mahaweli Authority for such projects, as the government prioritizes floating solar power developments to boost renewable electricity generation.

The Ceylon Electricity Board has been tasked with selecting investors following the competitive procurement procedure outlined in the cabinet proposal.