News
Govt. to invest Rs. 230 b more in crisis- ridden CPC
The Government is to invest more than Rs. 230 billion for a string of projects of the crisis-ridden and loss-making Ceylon Petroleum Corporation (CPC) within the next two years, senior officials said. The CPC’s Acting Chairman, S. Amarasekara, who is also the Prime Minister’s Secretary, said the biggest investment would go for the Sapugaskanda oil refinery expansion and modernisation project which was estimated to cost around US$ 1,500 million (more than Rs. 195 billion).
The other projects include construction of a 10 inch diameter jet fuel transfer line from Muthurajawela to Katunayake (US$ 50 million), designing and construction of a jet fuel pipeline from the Magampura Mahinda Rajapaksa Port to the Mattala Airport (US$ 40 -50 million) and developing and upgrading of aviation refuelling terminal and fuel hydrant system at the Katunayake airport (US$ 45 million).
A new crude tank for the refinery, installation of loading arms at the Dolphin Pier and pipeline facility at the Colombo harbour, construction of two diesel tanks each of a capacity of 10,000 mt and setting up a refinery laboratory are among the other projects. Mr. Amarasekara said 12 of the projects identified were important ones to be completed within the next two years to minimise losses. Most of the facilities to be replaced were more than 30 years old.
He said talks were underway with the Treasury to obtain finances for the projects, but much of it would come as loans. Petroleum Industries Ministry Secretary R.H.S. Samaratunga said the projects had been identified as they were required to meet the increasing demands for fuel. He said the expansion of the refuelling facilities at the Bandaranaike International Airport would contribute towards the increase of profits.
CPC Managing Director M.R.W.de Zosya said the corporation would also build a fuel tank complex in a 40 acre land at Pallai in the north at a cost of more than US$ 50 million. He said that the aim of the project was to have a better distribution system of fuel to the Northern Province and reduce the cost incurred in distribution.
He said 10 tanks with a capacity of 10,000 mt would be set up at this complex. “We are looking for an investor and having talks with the Treasury about the project. It is expected to begin by February next year,” he said.