- Min. Secy./LTL Holdings act. Chair says the PUCSL-approved proj.
is a long-term investment per the CEB’s Generation Expansion Plan
The Ministry of Energy stated that the power purchase agreement (PPA) signed between the Ceylon Electricity Board (CEB) and Sahasdhanavi Limited for a 350 megawatt dual-fuel liquefied natural gas (LNG) power plant was finalised through a proper, transparent, and competitive process, and that the cost of the project should be seen as a long-term investment, not a loss.
In April of this year, a PPA was signed between Sahasdhanavi Limited (a fully-owned subsidiary of LTL Holdings Ltd.) for the development of the said power plant. The Electricity Consumers' Association (ECA) alleged recently that the project in question could lead to an annual loss of Rs. 73 billion in public funds.
When queried by The Daily Morning regarding the allegations, Energy Ministry Secretary and Acting CEB Chairperson, who is also the acting ex-officio Chairperson of the LTL Holdings, Prof. Udayanga Hemapala said that all power generation projects of the CEB are implemented through government-regulated tender procedures, and that this project too was no exception.
“This project came through the Long-Term Generation Expansion Plan of the CEB. It was identified years ago as a necessary addition to ensure stability in the power supply system. These are not projects that we can judge by calculating simple profits or losses. Let’s say a certain number of billions is spent on this project. If it doesn't happen, yes, on paper, you could say that that amount was ‘saved’. But, if the project doesn’t happen, then we’ll face power cuts, and that will bring even greater losses to the country. This project is a long-term investment," he added.
He further added that the winning bidder was selected based on the lowest price through the proper tender procedures.
"If someone thinks that the Long-Term Generation Expansion Plan of the CEB is wrong, that’s a separate story. But, as far as I understand, that is prepared by the CEB and then submitted to the Public Utilities Commission of Sri Lanka (PUCSL) for approval. Then, no one can say anything. That's because the operator has prepared it, and the regulator has approved it," Prof. Udayanga Hemapala pointed out.
The ECA General Secretary Sanjeewa Dhammika claimed recently that LNG cannot yet be stored or imported to Sri Lanka due to the lack of infrastructure, meaning that the said power plant would initially operate on diesel, an arrangement he alleged would benefit individuals profiting from diesel-based generation. He also lodged a complaint with the Commission to Investigate Allegations of Bribery or Corruption, seeking an investigation into an alleged loss of Rs. 73 billion per year through the project.