Kerawalapitiya Combined Cycle Power Plant - Right of Reply

Mr. Daham Wimalasena, former Chairman, Ceylon Petroleum Corporation has written to The Sundy Times FT September 2 on the 300 MW Combined Cycle Power Plant Project that is being constructed at Kerawalapitiya by Lakdhanavi Ltd, expressing sceptical views on the possibility of operating the Gas Turbines with heavy Fuel Oil(HFO).

Mr. Wimalasena had been the Chairman of Ceylon Petroleum Corporation (CPC) for a very long period – first from 1977 to 1989 and again from 2002 to 2004. I was only attending the nursery school when Mr. Wimalasena first assumed duties as Chairman, CPC. But I have personally operated a 1000 MW Combined Cycle Power Plant operating on HFO in Shenzhen, China which is in operation for the past 20 years and have first hand experience. This plant had frame 9, GE Gas turbines which we have ordered for our Kerawalapitiya Plant.

The intellectual property of as to how HFO is combusted in modern CSGT machines has been obtained by Lakdhanavi at great cost with many an engineer visiting GE and assimilating the technology that is appropriate for the purpose. There are over 300 such gas turbines operating all over the world operating on HFO. There is absolutely no need to have any apprehension in this regard.

If Mr. Wimalasena is willing to expend sufficient funds he too could be well versed with this technology for which we at Lakdhanavi could guide him with the aid of our foreign partners.

Another very important factor is that the CEB is not taking any risk in this matter as they have not invested any funds. This is a Build, Own and operate (BOO) project under a Power Purchase Agreement where the tariff payable is based on the HFO operation. There is no way for Lakdhanavi Ltd to operate the plant on Auto Diesel Fuel (ADF) and claiming payment from CEB. Thus, the Kerawalapitiya power plant we are building is a massive burden on us and a windfall for the country and CEB who will save at least Rs. 8 billion per year.

Eng. Manjula Perera, Project Manager, Kerawalapitiya Power Plant Lakdhanavi Ltd