Sampur Power Plant Promised In 2011 But Final Agreements Have Not Been Signed
- Losing Power
By R. Wijewardene
Sampur Power Plant Promised In 2011 But Final Agreements Have Not Been Signed
The controversial Sampur coal power plant project appears to have suffered a further set back. Officials from the Indian state electricity company NTPC have been quoted as saying that financial disagreements with Sri Lanka’s Ceylon Electricty Board (CEB) have prevented them from coming to a final agreement on the project.
Indian news reports quoted a senior official from the National Thermal Power Company (NTPC) as saying that there are “several problems with the project.”
The principal stumbling block appears to be the CEB’s insistence that the Indian Government provides a guarantee of the funding for the project. In 2006 agreements were signed between the NTPC and CEB to explore the possibility of constructing a 1000 mega watt coal power plant in Sampur.
The project is estimated to cost 1 billion dollars over two phases. The cost of the first phase alone is estimated at $500 million. Preliminary agreements suggested that the NTPC and CEB would provide $75 million worth of funding each with the remainder of the financing to be obtained though private loans. The Indian government has refused to provide any additional financial guarantees.
And as yet there has been no final agreement on the project.
“No agreements have been signed and negotiations are underway… I am not party to the negotiations and I cannot comment on the reasons for the delay,” said Santosh Jha, Economic and Commercial Counselor at the Indian Embassy in Colombo.
The project was originally expected to have been completed in 2011, and the government has repeatedly claimed that the deal has been finalised. Speaking to The Sunday Leader just four months ago Media Secretary for the Power and Energy Ministry Harsha Abeykoon claimed construction work on the project would start in February and that the project would be completed in 2012.
However this statement is patently untrue as no agreement had been signed at that time. To this date the project has not been finalised and no construction or preliminary work has begun. The earliest the power plant will be ready is 2015.
When questioned about this statement, Abeykoon said that since he was no longer the spokesman for the Power and Energy Ministry he could not comment.
These are usual snags the government will have to face. Finally everything will boil down to funds. Though we have viable mega plans, someone should provide funding for these projects to be viable. That is why we have to have a proper control on the project minimising waste and commisions if there were anything requested or paid. The cultrue of bribary was initiated by UNP in the Mahaveli days and the Quotas of the Garment Industry. So many UNP mega meilioniare shot up by these two industries. There were other millioniares in the defence supply. These are the vultures who made life difficult to the government. All those people who made money are now at safe heavens in foreign countries still fuelling bogus stories. We have to take a grip of these development effort. I wish Basil will be able to take a handle on these commitments.