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Opposition warns of power crisis due to CPC bungling

Aug 31, 2011 2:30:11 PM - www.ft.lk

Colombo: The United National Party (UNP) today warned of a power crisis in the country due to bungling at the Ceylon Petroleum Corporation (CPC).
UNP parliamentarian Dayasiri Jayasekera told a press conference of a US$300 million scam at the CPC in importing low sulfur oil needed for thermal power generation that has caused the country’s power crisis.

He said the CPC was purchasing low sulfur oil at US$90 per metric tonne when the usual price ranged between US$27 to US$33.
He revealed that the government has arranged to purchase 35,000 metric tonnes of sulfur from Singapore’s Petrobras Company at US$90 per metric tonne and asked, into whose pocket the extra US$ 60 was going.
Jayasekera accused a mafia operated by a certain force in the private sector as being behind the scam.
He added that the stocks of oil were being purchased from a black listed foreign company.
According to Jayasekera, the Ceylon Electricity Board (CEB) has been compelled to resort to hydropower due to the CPC’s delay in supplying oil for thermal power generation.
The increased use of hydropower has resulted in the reduction of water levels in the reservoirs.
Not importing the required quantities of oil for thermal power plant operations and storing oil stocks, lack of standards at the plants and closing of the thermal power plants including the Kerawalapitiya Plant for repairs were some of the reasons for a future power crisis, the MP said. (Lankapage.com)