The Ceylon Electricity Board is planning to convert its thermal power plants from diesel and naphtha to Liquified Natural Gas (LNG) with a view to significantly reducing the operational cost of thermal power plants. This project will review the relevant existing feasibility studies and prepare an Environmental Impact Assessment and engineering designs for the construction of LNG Receiving Facilities i.e. terminal/jetty and pipelines to the power stations located in northern Colombo. The project will be implemented by the Ceylon Electricity Board under supervision of the Ministry of Power and Energy. For this purpose Cabinet has approved a Loan Agreement with the Japan Bank for International Cooperation to obtain Japanese Yen 820 million for the Energy Diversification Enhancement Project (Engineering Services) as well as to re-lend the proceeds of the loan to the Ceylon Electricity Board on terms and conditions laid down by the General Treasury. According to the Exchange of Notes signed between the Government of Sri Lanka and the Government of Japan in June, the Japanese Government has agreed to provide a loan of Japanese Yen 820 million (Rs. 820 million, approximately) through the Japan Bank for International Cooperation (JBIC) to undertake detailed engineering designs for the proposed project to construct LNG Receiving Facilities.