Cooling off on coal project: What’s up?

Reading the article "China-Lanka Deals on slow gear" on the Norochcholai coal power project by your correspondent Rohan Abeywardena in The Sunday Times of June 10, a suspicion has arisen as to whether this vital national project - Norochcholai coal power project - was deliberately delayed for interested parties to extract ‘commission’ from the Chinese contractors, which they have so far failed to, as this is a project funded by the Chinese government directly to the Sri Lanka government.

The Chinese Construction Corporation is owned by the Chinese government and as done by private companies no ‘commission’ is included in the contracted estimate.

As this writer was involved in the coal power generation programme of the CEB, when attached to the Ministry for Power and Energy since the 1980s, I have followed keenly the progress of work. Seeing a picture in The Sunday Times of 29.4.07, where a set of misguided, misinformed people were demonstrating against this project on the grounds of pollution, I wrote a letter to Minister W.D.J. Seneviratne with suggestions to expedite work as I had visited the site on 29.3.07 which date happened to be the day when 80 newly constructed houses were handed over to the displaced families. I suggested in my letter that the Minister enlist the support of the two MPs Naomal Perera and Mr. Azwer, who are now government MPs to meet those who objected and influence them not to carry on any demonstrations and educate them saying that all aspects on environment and technical matters have been well studied and gone into. As stated in your article, the loan agreement was signed between the two governments in September 2006, but before that President Mahinda Rajapaksa had inaugurated the work on this project, the first official function he attended on taking office. I pointed out in my letter to the Minister that the work on the road widening and improvements to the existing road from Palavi to the site - about 12 k.m. proceeded at a snail’s pace, perhaps due to the delay in disbursement of funds, which should not be so, as the funds for this part of the project are released by the CEB from its own budget.

The work on the plant site proper appeared dismal as there appeared to be no activity by the Chinese contractors. On inquiries, it was made known that the contractors had done some soil testing and taken the samples to China. That was over four months ago. In this regard, in my letter to the Minister, I suggested that he meets with the Chinese Ambassador in Sri Lanka and iron out any difficulties. Surely when the loan was made effective in September 2006, work could have started on the fabrication of the plant in China.

Sadly as your article states, “But to date the money has not been disbursed for the contractor – The China National Machinery and Equipment Import and Export Corporation to begin work. Why is this undue delay? The answer may be as your article subtly suggests, 'commission' or the grave blunder on the part of the government to question China as to whether it had supplied weapons to the LTTE”.

When I wrote suggesting the above action by the Minister W. D. J. Seneviratne , I got a reply, signed by his private secretary dated 15.05.07, stating that the minister had directed him to refer my letter to the project Director who cannot take any action on my suggestions as they are beyond his involvements. Doesn’t this show the utter callous disregard on the part of the Minister in tackling problems faced in the steady progress of this vital national project, forcing a power shortage, which is now inevitable, for diesel lobbyists to cash in with quick fix solutions along with the much talked of 'commissions' (not bribes)?

However, I see a keen interest taken by the Minister to introduce a Natural Liquid Gas (NLG) power plant funded by the government of Iran. According to a news item on 20.12.06, “The Power and Energy Ministry has planned to inaugurate the construction work on the proposed Iranian funded Light Natural Gas Power Plant at Mirissa late next year (i.e., 2007). NLG is a source of cheap power. Iran has undertaken to provide the necessary technology and expertise to set up the proposed plant. The plant will go into operation with an initial capacity of 500Mw. ”

“Does this not show that the Iranian NLG plant will be operative before the coal power plant at Norochcholai?. It should be emphatically mentioned that the NLG plant is not in the Short Medium/Long term generation plan of the CEB. It is suggested that this project be studied by the Committee of Public Enterprises (COPE) chaired by Wijedasa Rajapakse, in consultation with experts, consultants, both local and foreign and also by the CEB engineers before any serious major financial commitment is made and the CEB is put in a further financial mess. Finally, we are aware how expeditiously and efficiently this same Chinese Construction Corporation had completed work on the BMICH and the Court Complex before target. I am personally aware, how they completed the Nilambe Mini Hydro Project and how they mobilized themselves to complete the work. Hence please do not blame the Chinese for any delay and extending the date of completion to maybe 213.

By G.A.D. Sirimal, Boralesgamuwa.