- the proposed programme will focus on the green power development portion of the Government's energy sector investment programme and will help to encourage and facilitate private sector investment in renewable power generation. The first phase of the proposed programme will include the following construction works:

* 30 MW hydro-power plant at Moragolla;

* four new grid substations and associated facilities at Kerewalapitiya (220/33 KV), Kappalturai (220/132/33 KV), Kalutara and Kesbewa (both 132/33 KV) and augmentation of Katunayake and old Anuradhapura 132/33 KV grid substations in Western, Eastern and North Central Provinces;

* 33 KV lines and gantries at around Vavunativu and Madampe in Eastern and North Western Provinces; and

* DSM pilot sub-projects in Colombo under the physical investments.

The government will contribute US $40 million for Phase 1 of the project and the balance is to be provided as loans from the Asian Development Bank (ADB). The proposal made by H.E. the President, in his capacity as the Minister of Finance and Planning, to proceed with the relevant activities relating to the Agreements to be entered into, was approved by the Cabinet.