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CEB engineers ask President to allow completion of coal-fired power plant extension project

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‘Before the next power shortage in the country’

By Ifham Nizam

Perturbed by reports that the government will terminate the ongoing 300MW Lakvijaya coal-fired power plant extension project, the Ceylon Electricity Board Engineers Union (CEBEU) has appealed to the President to allow the completion of this project of national importance.

“We are certain that your Excellency will provide the Ministry of Power and the CEB the necessary directions and assistance to complete the extension project within the shortest possible time”, the Union’s President Eng. Saumya Kumarawadu, says in a letter to the President.

The President earlier decided to implement the 300MW coal power extension project considering the fact that the country is facing an imminent power shortage as a result of not constructing a single large low-cost power plant since 2014, he said.

However, officials at the plant complex said they have not been officially informed so far to halt work on the plant.

The Sri Lankan government has already saved more than USD 2 billion due to the three coal-fired power plants at the Lakvijaya Power Plant Complex in Norochcholai, officials said.

The extension project is now underway with the China Machinery Engineering Corporation (CMEC) investing USD 4 million, while the Ceylon Electricity Board (CEB) has injected USD 1 million, they said.

The proposed plant, the fourth to be built at Norochcholai will translate into an annual saving of more than Rs. 27 billion to the government, former CEB, Chairman Eng. Vijitha Herath said.

Last year, Cabinet endorsed the fourth unit should given to CMEC considering the substantial revenue already saved due to the contribution from coal-fired plants under operation.

Kumarawadu said the proposed 300MW extension project will generate nearly two billion units of electricity per year. The fuel cost per unit of the existing coal plant is Rs.10 less than the next lowest thermal option available, furnace oil power plants. Hence, the average annual saving to the country by this plant will be around Rs. 20 billion.

 The savings compared to costly emergency power will be in the range of Rs. 30 to 40 billion per year. The price of LNG is also rapidly increasing compared to coal and even LNG. The cost difference between coal and LNG will be around of Rs. 3 to 6 per unit and savings will be in the range of Rs. 6-12 billion or more annually. So, it is evident that this extension plant will immensely help to overcome the financial crisis both in CEB and CPC and will also provide immense relief to the Treasury as well, he pointed out.

 He further said the investment for the new extension unit was comparatively low. All other power projects in the pipeline, including large-scale renewables, demand enormous investments for infrastructure development with long time span for implementation.

“This should be seriously considered by the government in a situation where the country is facing severe financial hardships due to Covid-19 pandemic,” the CEBEU President stressed.

 All preliminary work related to the project such as comprehensive feasibility studies, finalizing technical requirements, comprehensive Environmental Impact Assessment (EIA) studies, commercial agreements are completed now, he said.

It is just a matter of beginning construction work at site and completing the project before the next power shortage in the country, he added.

The CEBEU also said that there is a massive propaganda campaign against coal and one of the false ideologies promoted by these forces is that many countries are moving away from coal. While agreeing that coal power development is on a declining phase in wealthy developed countries, developing countries have not stopped constructing new coal plants mainly to ease the financial burden on their national economies.

 Citing examples, he said there are new coal development plans earmarked in countries like India, Bangladesh and Vietnam in the range from 22,000MW to 66,000 MW the next 10-12 years. Germany, one of the leading wealthy countries in renewable energy development, commissioned the 1100MW Datteln 4 coal power plant in May 2020. Dubai, another country with a very strong economy is constructing the 2,400MW Hassyan coal plant. The initial 600MW unit of the plant is to be commissioned in 2023, Kumarawadu explained.



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Central Bank urged to save collapsing local industries

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The National Freedom Front (NFF) has requested the immediate intervention of the Governor of the Central Bank Ajith Nivard Cabraal to save micro, small and medium scale industries badly affected by the current economic downturn caused by the Covid-19.

The NFF parliamentary group comprises six members, including one National List.

Industries Minister Wimal Weerawansa, on behalf of the SLPP constituent parties, has warned of steep increase in unemployment, drop in the contribution made by small and medium scale industries to the national economy and the further widening of the gap between the rich and poor.

Party sources told The Island that the NFF had decided to take up the urgent matter because, in spite of repeated promises, those who had been severely affected were yet to receive assistance. Minister Weerawansa has urged the Central Bank to restructure loans obtained by affected industries and also extend the moratorium.

Weerawansa has in a letter dated Oct.18, told Cabraal that according to a survey conducted by the Industrial Development Board, micro, small and medium enterprises suffered serious setbacks. However, of the loans made available through the banking sector, a substantial segment had been disbursed among major players, the Minister said, while pointing out that in other countries in the region more than 50 percent of total loans were made available to micro, small and medium industries.

Unfortunately, here in Sri Lanka they received approximately 15 percent of the total given as loans, the minister said.

Minister Weerawansa said that though industries suffered, almost all state and private banks had recorded much improved performances with significant profits.

The Minister said that following his intervention with the cabinet of ministers, the government agreed on a plan of action to deal with the situation. It would be the responsibility of the Central Bank to implement the agreed proposals, he said.

(SF)

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So far no side effects among Pfizer vaccinated 15,000 A/L students

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By Rathindra Kuruwita

Over 15,000 GCE AL students had been vaccinated with Pfizer and there had not been any side effects, Colombo District Director of Health Dr. Dilip Liyanage told the media yesterday.

He said that the Ministry of Education had given them a list of 20,688 that needed to be vaccinated.

“We would like to assure parents that there is no need to worry. Over 15,000 children have been vaccinated and there have been no problems so far. Trust the health professionals and vaccinate your child at the first opportunity you get,” he said.

Dr. Liyanage added that children who missed their chance to get vaccinated on weekdays, can get vaccinated at the MOH office near their home.

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Govt. approves prohibition of cattle slaughter

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The government has approved the prohibition of cattle slaughter. The decision was announced at the weekly Cabinet meeting at the Information Department yesterday (19). The government said the relevant laws and regulations, including those passed by Local Government authorities would be amended for that purpse.

The Legal Draftsman has drafted Bills to amend the following acts and ordinances.

• Authority 272 of the Cattle Slaughter Ordinance No. 9 of 1893

• Act No. 29 of 1958 Concerning Animals

• Municipal Councils Ordinance – Section 252

• Section 255 of the Municipal Councils Ordinance

• Ordinance No. 15 of the Urban Council Act of 1987

The Attorney General has certified that the said Bills do not clash with the provisions of the Constitution.

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