Sobhadanavi LNG plant construction limps; CEB to lose billions from next year

By Ifham Nizam

The Ceylon Electricity Board would lose more than Rs. 100 billion from next year due to the delay in the construction of 350 MW Sobhadanavi Liquefied Natural Gas (LNG) plant at Kerawalapitiya that was expected to add 200 MW to the national grid this year.

However, non-availability of funds would bring the construction work to a halt at a time where such plant was the much needed, an energy expert and well informed official yesterday said.

A senior Electrical Engineer told The Island yesterday that the slow pace of construction was due to funding delays despite generators and turbines had been already imported to the country from a German company at a cost of nearly USD 70 million.

He said that the CEB at this juncture was not in a position to lose 2,000 million Gwh, a unit at Rs. 55 as otherwise emergency purchase of electricity would cost it more than Rs. 100 per unit.

“This will force CEB to go for another annual price hike,” the engineer stressed.

Power and Energy Minister Kanchana Wijesekera, CEB Chairman Nalinda Illgakoon and CEB General Manager Eng. Rohan Seneviratne have assured that with the proposed new tariff hike they will put an end power cuts.

The construction of this power plant is a long overdue project and if the power plant had been built on time, the power crisis that the country is facing today would not have occurred.

Construction work of the power plant commenced under the present government. The first phase of the project is expected to be completed by 2023 and 200 MW is planned to be added to the national grid. All designs and constructions of this power plant are carried out by Sri Lankan engineers.