Commencement Of Hydro Power Project Delayed
- Cost Of Broadland Power Project Likely To Increase
By Mandana Ismail Abeywickrema
Power and Energy Minister Champika Ranawaka
The Power and Energy Ministry believes that the delay in commencing the Broadland Hydro Power project, which is the last plant in the Laxapana complex in the Kelani River, would result in the escalation of its cost estimated at US$ 82 million.
Broadland is a 35MW hydro power plant that would generate 126 million units of power annually.
Power and Energy Minister Champika Ranawaka said the Broadland power project has been delayed due to the delay in finalising the commercial agreement.
“There are some clauses in the agreement that have to be addressed and the matter is now before the Attorney General’s Department. Once the department completes its work, the agreement could be finalised once the Chinese bank that provides the loan agrees to it,” he explained.
The Sunday Leader learns that the Attorney General’s Department is responsible for the delay in commencing the project.
The government is to raise 85 percent of the US$ 82 million required for the project through China’s ICBC and the remaining 15 percent through the People’s Bank.
When inquired about the increase in the project cost due to the delay in commencement, Ranawaka admitted that the delay would have an impact on the project cost.
“Insurance rates, interest rates and even material costs could increase resulting in an increase in the project cost,” the Minister said.
However, Ranawaka said the government was hopeful of finalising the agreement as early as possible.
The construction of the hydro power plant has been assigned to the China National Electric Equipment Corporation (CNEEC), which has presented the lowest bid for the project.
It is learnt the Broadland Hydro Power project has been in fact included in the master pan for electricity generation that was prepared about three to four decades earlier.
The project has therefore been in the pipeline for several decades without being implemented by the successive governments.
