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Ravi proposes power supplies from Turkish ships
View(s):The Cabinet is expected to discuss next week a proposal by Power and Energy Minister Ravi Karunanayake to award a Turkish company a tender to provide electricity from two power-ships to be anchored in the Galle harbour and at Kerawalapitiya.
Minister Karunanayake’s proposal is backed by Turkish Ambassador Tunca Özçuhadar.
Mr. Karunanayake has informed his ministerial colleagues “that it is unlikely” that the Ceylon Electricity Board (CEB) can produce the 495 MW of power required “in such a short period of time” and avoid further power cuts the country is facing due to delays in obtaining the approval of the Cabinet Tender Board, the Public Utilities Commission of Sri Lanka (PUCSL) and the Attorney General.
The proposal comes in the wake of Prime Minister Ranil Wickremesinghe’s letter to Minister Karunanayake and officials in the state power sector that the minister would be personally liable for any further power cuts. This was reported in the Sunday Times last week. The Turkish company, M/S. Karatdeniz Holdings is reported to have responded to the CEB’s call for an Expression of interest (EoI) for alternate power generation solutions due to the prevailing power crisis in Sri Lanka.
Mr. Karunanayake says the CEB is reluctant to recommend the Turkish company due to socio-political and legal issues. He adds that the Technical Evaluation Committee is also seeking time to evaluate the proposal.
Promoting the Turkish company, the minister says the developer will connect and supply power within four weeks of the Government agreeing to the proposal.
In what appears to be a move to bypass the CEB’s reluctance to make “quick decisions”, Minister Karunanayake is seeking cabinet approval for his proposal to direct the CEB to issue a Letter of Interest to M/S. Karatdeniz Holdings of Turkey on the recommendations of the Turkish Ambassador and “senior management” of the CEB.
He has also asked that the Finance Ministry grant exemptions on taxes, the Petroleum Ministry to issue the company a licence to request heavy fuel and for relevant government agencies to treat the matter on a priority basis.
In addition to the Prime minister’s warning to Minister Karunnayake last week, a member of the ministerial committee on the power crisis refused to sign their report accusing a Power and Energy Ministry official of tampering with their recommendations by typexing words (as reported in the Sunday Times April 14).
A source familiar with the issues told the Sunday Times that the latest proposals to give the Turkish company several concessions would costs the CEB Rs. 48 billion.
The source asked why the minister was proposing a Turkish company for emergency supplies when the CEB had given time until May 2 for the acquisition of further 100MW of grid-connected capacity.
He said the concessions included tax reliefs; free usage of ports; the company levying a massive “capacity charge”; the CEB to be responsible for waste disposal; the lack of any performance bonds; the CEB to fully fund the letter of credit; and a government guarantee for all these.