Proposed new coal power plant at Norochcholai

Dr. Janaka Ratnasiri’s recent informative article on pricing of coal power generation makes one wonder whether the Chairman CEB has overlooked other factors in computing the price. I must admit that I am not competent to comment on what Dr. Janaka Ratnasiri has said of pricing but I discuss other issues highlighted in the letter.

Dr. Ratnasiri says that power plants like the proposed one are no longer installed in developed countries as they have efficiency below 35%, meaning the plant consumes a higher amount of coal than a high efficient plant to generate the same amount of electricity. It is presumed this statement is in respect of the existing plants at Norochcholai supplied and constructed by China at a time when the country was facing a severe energy shortage in 2004. However, does it mean that we should go in for a similar plant in the 4th additional one. Perhaps Japan or Germany may come forward with modern state-of-the-art plant and better terms and conditions, inclusive of training our local personel to undertake minor repairs and maintenance. it is not out of place to mention here, when Mahinda Rajapaksa made a state visit to Japan as President and Ranil Wickremesinghe as Prime Minister, Japan offered a coal plant. Why not pursue that offer and avoid the cumbersome procedure of calling for tenders, taking years.

Next, he says low efficient plant also emit high amount of pollution. In this regard M/s Ramboll, Consutants have made a very clear statement in their report, appearing under ‘Smoke Emission’ presume Dr. Ratnasiri has read this report. However, it is questionable whether CEB maintains what is required to be done. This is confirmed when he says ‘ The Chairman’s statement also says that an environment impact assessment [EIA] study is underway. Actually, in Sri Lanka, an EIA study has no meaning and is carried out merely to get over a legal requirement. In the face of these reasons, should CEB consider China’s offer.

According to press reports, the 4th plant is to be undertaken on a loan from China. This does not necessarily mean that China should get the contract, instead call for worldwide tenders and select the best, as said earlier, a modern, state of the art plant. If that is done, China may come forward with very attractive terms, China wants to get a foothold in this vital sector – Electricity. There was also a proposal for a Joint Venture with China to operate the 4th plant which CEB engineers have vehemently opposed. There appears to be confusion on this issue, as at first Minister for Power and Energy sought Cabinet approval to undertake the construction, later he said no decision has been taken. It appears that the Minister, the Secretary and the Chairman CEB act independently and issue press statements.

The most interesting statement Dr. Ratnasiri makes is ‘it is likely that the CEB will have to depend on Chinese technicians to manage the new plant. One could guess, China does not train our locals to undertake running repairs. keeping certain technical aspects secret to have a hold on this important sector. It is absolutely essential, the government plays heed to the CEB engineers’ objection and allow CEB to operate the plant. It should be stated, if a joint venture is signed with China, the Chinese partner will enter the administration, making CEB to face unnecessary problems, as Chinese will consider only the profit and not the interest of the country, the institution and the consumer. At the end, when dividends are paid, repatriate that sum in foreign exchange to China, when President Gotabaya Rajapaksa, making all efforts to curb outflow of foreign exchange by restricting imports of even essential day-to-day requirements and calling upon people to produce locally what could be grown or manufactured. Ministers, State organisations should rally round President Rajapaksa to keep his promises made at the Presidential Election. One specific promise was that he will not approve any project without a feasibility study and its financial viability.

It is believed that a new government will be formed, under the same President Rajapaksa, and we the citizens hope for a radical change on his watch.

G. A. D. Sirimal

Boralesgamuwa