Construction of a US$215M hydro power project on Sri Lanka’s Kukule river is now under way. Local companies have begun work on access roads and infrastructure units including buildings at the site.

The Ceylon Electricity Board, the state-owned electricity company, said that the plant is expected to generate an estimated annual average of 317GWh of power. The Board and Japan’s Overseas Economic Cooperation Fund will provide the bulk of the funding of US$195M, with the balance being borne by the state monopoly.

Construction of waterways and the power station has been awarded to AB Skanska of Sweden, while the contract for building diversion facilities was won by a joint venture formed by Kajima, Kumugai and Hazma Corporation of Japan. Both contracts are worth in the region of US$100M.