Asia Power (Private) Ltd.

MIGA issued a $1.7 million guarantee to Nissho Iwai Corporation of Japan for its $4.1 million investment in the building, ownership, and operation of a 51 megawatt diesel engine power plant in Sri Lanka. MIGA's guarantee covers the risk of war and civil disturbance.

The project is expected to help alleviate Sri Lanka's shortage of power, which has been widely recognized as a bottleneck to its economic growth. In addition to creating local employment, the project will utilize local suppliers and service companies. During the construction phase of the project, approximately $3 million will be expended in the local market. The improvements to the area's physical infrastructure, which will benefit the local community, include the construction of a new access road.

The project will create approximately 65 jobs once it is completed. The local staff will receive on-site training in contract administration, safety and environmental compliance, plant testing and commissioning, fuel supply coordination, and plant dispatch. The project will also enhance the country's skills in the design, construction, operation, and management of small electric power plants.