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Wide ranging rackets benefiting CEB engineers

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By Ifham Nizam

The Ceylon Electricity Board implements most of its power transmission and distribution infrastructure development projects like the construction of new transmission lines, transmission and distribution substations, etc., using loan funds obtained from international lending agencies such as the Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA).

These “concessionary” loans are guaranteed by the government, and projects funded by those loan packages are implemented through specially set up project management units (PMUs).

Engineers attached to PMUs are given special facilities and monetary incentives on the understanding that they will work outside normal working hours and weekends to complete their projects on time and within the allocated budget.CEB often justifies these projects for priority financing citing “great national importance” and the critical needs to improve the power transmission and distribution infrastructure of the country.

Almost all of these project titles carry the words like “green energy”, “clean energy”, “green power”, etc., signifying these investments are primarily aimed at using renewable energy.

However, according to a senior official of the Ministry of Power & Energy, these projects are seldom completed within the given time period or budget. Because of this reason not only the expected benefits of these investments are often lost to the country, but the government incurs heavy losses by way of commitment fees paid to lending agencies.

Once project funds are committed through a loan agreement, the government has to pay this fee to the lending agency, generally computed as a percentage of the loan amount or the “commitment amount”. It is a significant burden to the government, especially in a situation where there is a severe shortage of foreign currency.

If the loan funds are disbursed within the original term of the loan, this “front end fee” is charged at a lower percentage. Hence, when CEB does not complete projects in time, the government ends up paying a higher commitment fee, and is also forced to seek an extension to the original loan disbursement period, thus incurring further costs.

Even more disturbing than long delays in project completion is that some completed projects have turned out to be wasteful investments of foreign funds given to the country.It is understood that the former CEB Chairman M. M. C. Ferdinando had questioned why the new 132kV transmission line between Ambalangoda and Galle, which was completed in 2017 at a cost of Rs. 1,500 million, remained unserviceable to date.

The Sunday Island understands that CEB’s System Control Center is able to switch on this transmission line only when the Samanalawewa Hydropower Plant is running at full capacity.This project had been billed by CEB’s transmission planners as a high-priority investment and solution for the serious transmission bottlenecks in the southern network of the country. Southern areas had been experiencing serious transmission capacity restrictions for decades.It is understood that the CEB General Manager has responded to the Chairman’s inquiry by stating that the commissioning of several new transmission lines that are presently under construction would make the Ambalangoda-Galle transmission line operational.

The 220kV transmission line from Pannipitiya to Polpitiya via Padukka is another example of a costly planning blunder by the CEB. Construction of this long transmission line commenced in 2015 but was delayed owing to many problems, including public protests and court cases filed by some landowners.However, when this ADB-funded project was eventually completed in late 2021 (after a delay of over five years), it has been discovered the power flows in the wrong direction when the line is switched on, causing overloading of the Pannipitiya substation.Hence, this transmission line also remains idle presently. It is understood that CEB planners have explained that power would flow in the right direction once several other transmission lines (being constructed under different loan packages, and already delayed by many years) are completed.

The then CEB General Manager taking part in a national television discussion following the countrywide power outage on August 17, 2020, explained that the unavailability of this critical transmission line was a major contributing factor to CEB’s inability to restore supply for many hours.Another example of colossal waste of funds is the transmission substation at Kappalthurai in the eastern province that has cost the country over Rs. 2,500 million of ADB loan funds. Since there is no high demand for electricity or no future growth in demand in the area, this installation will be idle for the foreseeable future.

According to CEB employees, the existing Trincomalee substation, which is situated about 11 km from this new substation, has ample capacity to serve the electricity demand in the area for many years to come. In the meantime, CEB has made a large investment in increasing the capacity of the Trincomalee substation as well.It is also understood that CEB’s Projects Division has been maintaining several non-functional PMUs for years, spending large sums of money on rented project offices and large project staff, even when no funding has been secured for relevant projects.

CEB employees complain that project directors and their engineers attached to these “white elephants” are allowed to enjoy all benefits, including project allowance (an additional amount equal to one-third of monthly salary) and luxury SUVs because most of them hold important positions in the powerful CEB engineers’ union.They claim that the CEB management never holds to account any project manager responsible for long delays, but they are allowed to continue to enjoy all the perks. According to a senior engineer who works as a consultant on project-related work, this guarantee of “job security” acts as a strong incentive for the project engineers to prolong their projects.CEB employees believe another reason for this lackadaisical attitude of CEB top management is that foreign-funded projects have long been a steady source of luxury vehicles for CEB engineers.

Most vehicles used by top CEB engineers including the General Manager have been provided under different foreign-funded projects, as the existing government guidelines will not allow the purchase of such high-end SUVs having large engine capacity including premium European makes like Audi and Mercedes Benz for government officials.CEB employees complain that the Ministry of Power & Energy generally turns a blind eye to these irregularities mainly because the majority of project managers and their project engineers are top officials of the powerful engineers’ union.

They allege that even the Public Utilities Commission of Sri Lanka (PUCSL,) which has the legal obligation to ensure CEB will not make unnecessary or wasteful investments in its transmission infrastructure, has never questioned CEB regarding assets that are idling for many years after spending billions of rupees of public money.



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Indo-Lanka MoUs unlikely to be tabled in Parliament any time soon

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Ali Sabry

…of seven SOCs only one constituted so far

Sri Lanka’s controversial MoU on Defence Cooperation with India was unlikely to be taken up any time soon in Parliament in spite of the House Sectoral Oversight Committee (SOC) on Governance, Justice and Civil Protection that has been assigned defence, authoritative sources told The Island.

Of the seven SOCs only one was activated with the recent election of Dr. Najith Indika, MP, as the Chairman of the Sectoral Oversight Committee on Governance, Justice, and Civil Protection of the Tenth Parliament.

The inaugural meeting of the current parliament was held on 21 Nov., 2024.

Sources said that the parliament had met for the last time yesterday (10) before the Sinhala and Tamil New Year holiday. It is scheduled to meet again on May 8.

The UNDP that has financially backed the establishment of the SOC system to help strengthen the role of the parliament recently reached a consensus with the government to reduce the number of SCOCs from 17 to seven. The Island, in writing, asked for the UNDP’s reaction to the operation of SOCs but had not received a response at the time this edition went to press.

The SOCs have the power to examine any Bill, except the Bills defined in Article 152 of the Constitution, Treaty, Reports including the Annual and Performance Reports relating to the institutions coming under its purview or any other matter referred to the Committee by Parliament or any Committee or a Minister relating to the subjects and functions within their jurisdiction.

Sources said that out of the seven SOCs only one had been activated during the past five months though the government and the Opposition agreed to share the leadership of them.

Accordingly, it was agreed that the government would appoint chairpersons to four SOCs –– Economic Development and International Relations, Health, Media and Women’s Empowerment, Science, Technology and Digital Transformation and Governance, Justice and Civil Protection .

It was also agreed that the Opposition would appoint chairpersons to the SOCs on Infrastructure and Strategic Development, Education, Manpower and Human Capital, and Environment, Agriculture and Resource Sustainability to the Opposition.

India and Sri Lanka on April 5 signed six MoUs on HVDC interconnection for import/export of power, cooperation in the field of sharing successful digital solutions implemented at population scale for digital transformation, defence cooperation, multi sectoral grant assistance for Eastern province, health and medicine and pharmacopoeia cooperation. In addition to them, India, Sri Lanka and UAE signed a tripartite MoU cooperation in development of Trincomalee as an energy hub.

The Island  asked Ali Sabry, PC, who served as foreign minister during Ranil Wickremesinghe’s tenure as the President (July 2022 to Sept 2024) whether the seven MoUs had been discussed during that period. We also asked him whether those MoUs should have been discussed at SOCs before finalisation.

Sabry said: “Most of the MOU to my knowledge were discussed except the one on Defence Cooperation, which I am unaware of. General procedure is the relevant line ministry prepares the initial draft and gets the input from the Foreign Ministry and goes for stakeholder consultation of all ministries and agencies involved. Then the President’s Office grants its sanction and with the approval of the AG, it goes before the cabinet of ministers. With Cabinet approval, the government could sign the MOU.”

Sabry said that he was of the opinion that once the government signed a particular MoU, it should be placed before the parliament. “MOU’s are generally not legally binding and only signify the desire to work together. If the signed MoUs were to be implemented, then they have to be followed by agreements or laws.”

He emphasised the pivotal importance of transparency in the whole process. The ex-minister said: “I think transparency is crucial in these matters. Concealment leads to speculation and assumption of the worst. The MOUs should be tabled in Parliament for public information. Discussion at the relevant SOCs would have been helpful. There are growing fears fueled by lack of information in the public domain. This is a private comment, not to be attributed to me.

Asked whether MoUs, particularly the ones on defence and energy had to be approved by the Attorney General, the former minister said that the AG has to advise the MoUs compatibility with the Constitution. “But Article 157 of the Constitution does not apply; the 2/3 majority stipulated there envisages only investment treaties.” Foreign Minister Vijitha Herath assured Parliament on April 8 that the AG had cleared all seven MoUs and none of them were inimical to the country.

By Shamindra Ferdinando

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LG polls: Appeal Court orders EC to accept 35 additional nomination papers

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The Court of Appeal yesterday ordered the Election Commission (EC) to accept 35 additional nomination papers for the 2025 local government elections, which had been previously rejected by election officials.

The ruling was issued yesterday by a bench comprising Acting President of the Court of Appeal, Justice Mohamed Lafar Tahir, and Justice Priyantha Fernando. The court ordered the relevant Returning Officers to accept the nominations following hearings on several petitions filed by political parties and independent groups challenging the rejections.

Last week, the Court of Appeal ordered the EC to accept 37 previously rejected nomination papers.

by A.J.A. Abeynayake

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Defence MoU with Quad member will drag Sri Lanka further into new cold war: CP

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Dr. G. Weerasinghe

The Communist Party (CP) of Sri Lanka yesterday (10) expressed grave concern over the NPP government’s unilateral decision to enter into a defence MOU with Quad-member India.

The CPSL urged All democratic and progressive forces to pressure the government to reveal the contents of the defence agreement with India. It also asked the NPP government to revive the Indian Ocean Peace Zone proposal at the UN and mobilise global opposition to militarisation in the region. All democratic and progressive forces had to build a United Front against a New Cold War, the CP has said.

General Secretary of CP Dr. G. Weerasinghe has issued the following statement: “This decision has been taken without consultation or debate in Parliament and in the context of a New Cold War and heightened militarisation of the Indian Ocean.

During Indian Prime Minister Narendra Modi’s visit to Sri Lanka from 4-6 April, a defence MOU was exchanged between Secretary of the Ministry of Defence of Sri Lanka retired Air Vice Marshal H.S. Sampath Thuyacontha and Indian Foreign Secretary Vikram Misri.

Indian media has framed this MOU as being part of Indian strategy to counter China’s presence in the region.

President Anura Kumara Dissanayake assured Modi that Sri Lanka, “will not permit its territory to be used in any manner inimical to the security of India as well as towards regional stability”. While the CPSL has no fundamental objection to this, questions remain over India’s own commitment to regional stability.

The fact is that India is a member of the Quad and has partaken in US efforts to contain China in a New Cold War. In 2024, current US Secretary of State Marco Rubio tabled a bill in congress to grant India a status on par with NATO members. During a meeting between Modi and US President Donald Trump in February, India and the US entered into a 10-year defence partnership framework to transfer technology, expand co-production of arms, and strengthen military interoperability.

By entering into defence agreements with India, there is a very real danger of Sri Lanka being dragged into the Quad through the back door as a subordinate of India. Sri Lanka could become a de facto part of the Indo-Pacific Strategy and compromise its non-aligned status. This would be antithetical to Sri Lanka’s interests as China is a major investor and trade partner for the country and has supported our sovereignty in international fora.

Sri Lanka is currently not directly embroiled in any conflict with an external actor and therefore has no need to enter into defence agreements. The last defence agreement that Sri Lanka entered into was with the UK-Ceylon Defence Pact (1947-1957), which was a neocolonial arrangement detrimental to Sri Lanka’s sovereignty and international relations.

The defence MOU with India could also be interpreted as a step towards further militarisation of the Indian Ocean, which is a violation of the UN Declaration of the Indian Ocean as a Zone of Peace which both countries supported.”

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