Archives

Govt to proceed with Upper Kotmale

by Rashomi Silva

The government will go ahead with the Upper Kotmale Hydro- power project (UKHPP) contrary to rumours that the CEB has abandoned the project.

Speaking at a news conference at the Ministry yesterday, Power and Energy Minister Karu Jayasuriya said the government will go ahead with the UKHPP unless a Cabinet decision is taken to withdraw the project. The minister told reporters that since Cabinet approval had been granted for the UKHPP he had an obligation to continue the project. "It is my duty as the Minister for Power and Energy to go ahead with the project," he said.

Ceylon Electricity Board General Manager D.C. Wijeratne commenting on the UKHPP said the CEB was progressing with preliminary work such as planning, selecting consultants and land acquisition.

"We are now selecting project consultants. Funding agencies have produced a short list of consultancy firms and within the next three to four months we will select the consultancy firm that suits our needs." The unit cost for generation will be less than 80 cents, during the grace period of 10 years after the completion of the UKHPP.

"We have insisted on transparency in everything we do," Jayasuriya said. "That is why we have invited the consultants to forward their project proposals."

Considering the spiralling cost of living Jayasuriya said the CEB decided to absorb the increased rates of fuel during recent past despite the heavy financial crisis it is going through. Wijerathne commenting on the electricity rates said: "There had been no revision in electricity tariffs since last May even though there had been a 52 per cent increase in fuel rates since the last electricity tariff revision."

Although there is no possibility of bringing down electricity tariffs in the foreseeable future there is no question about tariff increases at this juncture, the Minister added.

Explaining CEB's financial position Wijeratne said by the end of last year the CEB brought down the overdraft to less than Rs 3 million, which stood at Rs.11 billion at the beginning of the year. At present the short term loan of the Board is less than Rs. 14 billion, he said. "Our financial position has improved greatly during past year but it is still not what we would ideally wish for."

Wijeratne said the CEB is optimistic that the power cuts will be a thing of past and "we will be able to face the approaching April drought successfully".

Responding to a question on the possibility of an outbreak of war in the Middle East and its impact on the CEB vis-a-vis fuel prices, Wijeratne said if there was a monumental increase the CEB will have no option but to raise electricity rates. However, the CEB will do its best not to pass the burden to the consumer, he assured.

Meanwhile, Jayasuriya said there are signs of oil in the peripheral areas of the country and they had already invited several neighbouring countries to assist the government in oil exploration. Chairman of the Ceylon Petroleum Corporation (CPC) Daham Wimalasena said the CPC tanks are filled to capacity if an emergency situation developed.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager