Electricity for 85% by 2010

Uditha Kumarasinghe

COLOMBO: The Government has finalised a mega programme to augment the national grid that will see 85 per cent of the country's population provided with electricity by 2010.

A further project to provide electricity through solar energy and mini hydro schemes that will meet the needs of between five to 10 per cent of the population is also in the pipeline.

Electrification of 90 per cent of the country by 2010 will be a significant milestone for Sri Lanka, Power and Energy Deputy Minister Mahindananda Aluthgamage told a media briefing at the SLFP Headquarters yesterday.

Already Rs.10,000 million in funding has been pledged by the Asian Development Bank, Chinese Government and Swedish Government. Several rural electrification programmes with the funding are under implementation, he said.

"At present the electricity supply covers only 72 per cent of the country. It is expected to reach 75 per cent by the year end," the Deputy Minister said. On President Mahinda Rajapakse's directive plans are under way to implement projects in the power sector which will ensure all households are provided with electricity while also meeting the demands of industries and foreign investors' needs.

The Government's target is to provide electricity to all at an affordable price as pledged in the Mahinda Chintana. "The Government has fulfilled nearly 60 per cent of pledges given in the Mahinda Chintana in relation to the power sector," the Deputy Minister noted.

According to him, political and other interferences have been the bane of the country's energy sector. In such a situation, the Ceylon Electricity Board (CEB) has been plunged into a crisis while the consumers have been burdened with huge electricity bills.

According to the Deputy Minister, Sri Lanka heads the Asian region as the country which charges its consumers the highest electricity rates. "Today the cost of diesel powered generation is over Rs. 11 per unit whereas this is very much lower in the case of hydro power.

The average selling price to the consumer is around Rs. 7.70 per unit. Due to this disparity, the CEB loses nearly Rs. 45 million a day. In addition, the short-term and long-term loans of the CEB amounts to over Rs. 80 billion."

Aluthgamage said to overcome this situation, the long delayed coal-fired thermal plant and the hydro plants as envisaged under the generation plans of the CEB are to be constructed expeditiously taking into consideration the social problems and environmental implications.

"In this situation, there won't be any power cuts or a power crisis until 2015," he said. The Deputy Minister said the Norochcholai coal-fired power plant delayed due to political and other interferences has now been finalised as a result of the President's personal intervention.

"Following the President's initiatives, funding for this power plant by the Chinese Government was increased from US $ 300 million to US $ 450 million. Agreement has already been signed with the Chinese contractor and work is due to commence in April 2006", he said.

The first stage of the Norochcholai power plant with a generating capacity of 300 MW will be completed in 2010 and subsequently increased in stages to reach 900 MW. The production from this plant will bring down the present production cost from Rs.11 per unit to Rs. 4.50 or Rs. 5.00 a unit.

The President during his first State visit to India, negotiated with the Indian Government the required funding for the establishment of a coal-fired power plant with an initial capacity of 500 MW at Trincomalee. This project will be implemented as a joint venture between the two countries that is expected to generate 1000 MW in its final stage, he said.

Under the Mahinda Chintana, steps are being taken to finalise plans to implement Moragolla, Uma Oya, Gin Ganga and Broadlands hydro projects within the first six years. When completed, these projects will yield a total of 200 MW. In addition, arrangements are being finalised for a 300 MW combined cycle plant at Kerawalapitiya.

The first stage will be completed within 15 months and add 200 MW to the national grid, the Deputy Minister said.