Kerawalapitiya power plant to commence operation in october

Colombo: The controversial Kerawalapitiya power plant in the Gampaha District is expected to commence operations in the first week of October, the official in charge of the US$ 420 million project M.J.M.N. Marikkar said.

Meanwhile, Ceylon Electricity Board Engineers’ Union (CEBEU) President Jayawilal Meegoda claimed that the government depended entirely on commercial loans, instead of concessionary loans, to fund the project, adding a huge burden to the already indebted economy.

“We could easily have got concessionary loans from international donor agencies, but the Treasury did not take that step,” Meegoda said. “Because of that we have to pay high interest rates to these commercial institutions. That has also created an unusually high capacity cost, which the government has to incur, whether the power plant produces electricity or not,’ he added. The capacity cost is around 50% more than the usual, it is alleged.

The Ministry of Power and Energy recently appointed a three-member committee to probe into matters related to efficiency and unit price of electricity generated. The committee is due to hand over its report next week.

Marikkar, who is also the Deputy General Manager-Lanka Transformers Ltd, and Project Director-Kerawalapitiya Power Project, said that there were many issues concerning the project, which they discussed with Power and Energy Minister, John Seneviratne. He has promised to look into the matters.

The power project will eventually add 300 Mega Watts (MW) to the national grid. In the first phase of the project to be launched next month, 200 MW will be added to the grid, while in the second phase, 100 MW will be added next year, using steam energy.