The Norochcholai Coal Power Plant was first commissioned in the late 1980’s but was not carried forward due to widespread opposition. The official EIA report for the first phase of the project (300MW) was done in 1998. In 2005 negotiations were restarted by Former President Rajapakse and the contract was signed in 2006. The construction cost was estimated to be $1.35 billion of which $450 million has been granted on a long term, low interest rate loan by the EXIM Bank of the Republic of China. Construction was undertaken by CMEC (China Machinery Engineering Corporation).
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