By Maheesha Mudugamuwa The Ceylon Electricity Board (CEB) has decided to cancel the legal consultancy agreement entered into with an external lawyer to draft agreements related to the formation of a joint venture with China Machinery Engineering Corporation (CMEC) for a 300 MW extension to the Lakvijaya Power Station in Norochcholai, The Sunday Morning learnt. Speaking to The Sunday Morning, Ministry of Power Spokesman Sulakshana Jayawaradena confirmed the cancellation of the agreement with an external lawyer which had resulted due to the vehement opposition from various parties. A senior engineer attached to the CEB stressed that the Board would obtain legal assistance from the Attorney General’s (AG) Department on this matter. The decision to hire an external lawyer was taken at the CEB’s board meeting held in April and all board members had agreed to the decision, the CEB Chairman said, adding that the relevant lawyer was one of the best lawyers in Sri Lanka to handle power-related international agreements. At the time, CEB Chairman Eng. Vijitha Herath told The Sunday Morning that by hiring an expert in the field, the Board was saving a large sum of public funds in case an issue arose between the two parties in the agreement. The CEB had approved to retain the lawyer’s services at a total cost of Rs. 17.65 million, excluding taxes. Last year, a cabinet proposal was submitted by the Ministry of Power and Renewable Energy, seeking the approval of the Cabinet of Ministers to authorise the CEB to construct a fourth unit with the capacity of 300 MW as an extension to the Norochcholai Coal Power Plant. It was also noted that the plant could be built by using the same infrastructure in the same facility and that a request could be made from China to provide a concessionary loan facility directly to the CEB to meet 100% of the project cost to implement the project on a government-togovernment basis. This took into consideration the fact that three existing power plant units were funded by China in accordance with the Memorandum of Understanding (MoU) between Sri Lanka and China on the comprehensive implementation of investment, economic, and technological co-operation signed on 4 July 2016, and the framework agreement between the two countries for the promotion of investment and economic co-operation signed on 16 May 2017. Furthermore, the senior engineer told The Sunday Morning that the financial consultants had already been finalised and the initial evaluations were being conducted.