Kerawalapitiya power plant will help avert power crisis - Power and Energy Minister

Ramani Kangaraarachchi

COLOMBO: The open cycle operation of the 300 MW Combined Cycle Power Plant at Kerawalapitiya will start from July 2008 avoiding possible power shortages in the country, said Power and Energy Minister W.D.J.Seneviratne after signing Shareholders Agreement for the project at Taj Samudra Hotel, Colombo.

Minister Seneviratne revealed that the US$ 306 million will have the lowest energy cost per unit out of all the thermal power plants in the country as it will operate on heavy fuel saving at least Rs ten billion annually.

“This is the first occasion that heavy fuel will be used on a combined power plant in Sri Lanka,” he said.

He said that he was alarmed by an analysis of the power situation which pointed out a severe shortage of power from 2007 to 2011 and it was essential to set up the plant urgently.

As a result Lakdhanavi Limited, a subsidiary of Lanka Transformers and Ceylon Electricity Board who had a proven past performance of undertaking major generation projects and completing them economically well ahead of time was identified to complete this project on a Build, Own, Operate, Transfer basis.

Earlier the plan was to do it on a Design, Build and Transfer basis but the CEB could not absorb the cost of that project and the only option left was to convert the project into BOOT basis, the minister said.

He said the cost of the project went up from US$ 222.5 million to US$ 306 million because of this conversion which included additional cost such as insurance and interest during construction. He regretted that certain media maliciously reported this.

All contracts with the relevant suppliers have been finalised, environmental clearance has been obtained and the foundation work has already commenced.

The first gas turbine is to arrive at site in early January 2008 and the Combined Cycle plant will start from June 2009.