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India proposes $ 12 m grant for renewable energy projects in Jaffna peninsula islands

14 Feb 2021

  • Tender to be awarded to Chinese Co.; Cabinet approval pending

By Maheesha Mudugamuwa Sri Lanka is considering a proposal received from India through its High Commission in Colombo to grant $ 12 million to develop a hybrid renewable energy system on three islands off the coast of the Jaffna peninsula, for which it was decided that the tenders would be awarded to a Chinese company with funds from the Asian Development Bank (ADB), The Sunday Morning learnt. However, Cabinet approval is yet to be received for the tender being awarded to the Chinese company. Considering the financial benefits that would be enjoyed by the country, Minister of Power Dullas Alahapperuma said that the personal proposal he received, as the Minister of Power, from India was to offer the amount of $ 12 million as a grant or as part of the credit line worth $ 100 million offered by India. He said the proposal would be submitted to the Cabinet soon. “If we think of our citizens, receiving a grant is an advantage and it will also ease the burden on the Treasury, because if we go ahead with ADB funds, the Treasury will have to repay those in the future,” he told The Sunday Morning. Also denying that he was being subjected to any diplomatic pressure due to the decision taken to award the contract to a Chinese company, Alahapperuma said that he was not pressured by anyone, adding that they decided to award the tender according to the necessary procedures. “However, there might be concerns from other countries, which are not relevant to Sri Lanka. Though we have decided to award the tender to the Chinese company, we are yet to receive Cabinet approval,” he said. He added that the people who live on the three islands – Delft, Analativu, and Nainativu – should benefit as well, while they should also receive uninterrupted power supply throughout the year. “These islanders were supplied power through generators for a long time by the Ceylon Electricity Board (CEB). This is not a permanent solution. If we can give them a permanent solution and enhance their livelihoods, we would continue the project by considering their side,” the Minister noted. The energy deal won by the Chinese company to set up three hybrid renewable energy systems mixed with solar, wind, and other renewables on three Islands in the Jaffna peninsula came to light amid creeping signs of deterioration in relations between India and Sri Lanka due to the cancellation of the long-awaited Colombo Port’s East Container Terminal (ECT) deal by the Cabinet recently. Meanwhile, CEB Chairman Eng. Vijitha Herath told The Sunday Morning that the decision to award such projects to develop a hybrid renewable energy system was taken considering the success of a pilot project conducted in Eluvaitivu, an island off the coast of the Jaffna peninsula, located approximately 22 km (14 miles) west of the town of Jaffna. It has been decided to award the $ 12 million project to the MS/Sinosar-Etechwin joint venture in China. Under the project, international competitive bids were called to install hybrid renewable energy systems on the three islands utilising the accessible energy resources to improve the efficiency of the prevailing energy network. The project is to be funded by the ADB, it is further learnt.


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