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Kotmale power project on verge of proving its potential
By Mahangu Weerasinghe
Preparations for the start of the first lot of the Upper Kotmale Hydropower Project (UKHP) are continuing despite strong opposition from a number of parties. The project, which was initially proposed in 1994, and having dragged on for more than a decade, now appears to be heading for some sort of finality.

Tenders for the first lot were called in early November last year and closed on January 26 this year. "The evaluation process has been completed but no decision has yet been made regarding the awarding of the tender," UKHP Project Director Shavindranath Fernando said.

Mr. Fernando confirmed that three out of the four applicants were short-listed for consideration. The Ceylon Electricity Board officials said work on the first lot of the UKHP is scheduled to begin in early June.

The Ceylon Workers Congress (CWC), which originally opposed the project, has now agreed to the dam being built, as long as only one waterfall was affected.

When the power plant becomes operative it is expected to generate close to 528 GWH (Giga-Watt Hours) a year. The Sunday Times learns that following strong protests by the CWC the Cabinet revamped the earlier plan with the project been diluted somewhat to only tap the Kotmale Oya, and not its tributaries.

Once completed, the dam would only alter the water flow to St. Clair's waterfall. The planned dam will be built just outside the Talawakale town, and water will be pumped from there through underground pipes which run towards the Pundal Oya Falls before turning to the northwest towards the existing Kotmale dam and reservoir. The water will be directed to an underground 150 MW two-turbine powerhouse located at Niyangamdora. After use, the water will be released to the existing Kotmale reservoir.

The proposed reservoir will submerge several buildings including a school, an Urban Council building, three Hindu Kovils, two Churches, three crèches, two libraries and a volleyball court. The area that will go underwater is also home to around five hundred families. The UKHP however has assured that all residents will be relocated under favourable conditions and that the buildings too would be reconstructed elsewhere.

"Residents will be relocated in accordance with the National Involuntary Resettlement Policy which means that all aspects of relocation will be looked in to", V. Chandrasegaran, the Assistant Resettlement Officer of the UKHP Talawakale office said.

Mr. Chandrasegaran said almost all residents wanted to move out of the area.
"We are offering them a new house on seven perches of land, with the title in their favour - something which many of these people do not have", he explained.
"Also schools like the Tamil Maha Vidyalaya currently housed in an old tea factory will be given new buildings," Mr. Chandrasegaran said.

D. Durairaj (63), a resident of Kumuragama Place, said that most of the residents in the area were willing to relocate. "The CEB has promised us better housing after relocation", Mr. Durairaj said.

Pointing to his own house, which was made of mostly wood, Mr. Durairaj said that people had stopped renovating their houses over the past few years as they expected to move.

However, S. Senduran (24) of the Middleton settlement has another story to tell. "We've lived by the river all our lives, and now they want us to relocate," Mr. Senduran said.

"When in a tight spot I can even take some sand from the river and sell it," he said. The Middleton resident said that he would be happy to move with his family if proper facilities were given at the new resettlement site.

UKHP representatives meanwhile say that the environmental impact of the project will be minimal. They said St. Clair's waterfall, which flows throughout the day in the rainy season, will be as functional in the dry season, when water will be released at half hour intervals.

"We have done research among tourists and found that most spend around fifteen minutes at the waterfall," said Mr. Chandrasegaran. "A fifteen minute nature trail and viewing gallery will also be built in front of St. Clair's, and this will help boost tourism in the area as well", he said.

K. Ramasami (48), another resident of Middleton is disappointed with the length of time taken for the project to come to fruition. "For years they have been telling us that we are going to be resettled, but that has never happened", Mr. Ramasami said. "Now I am getting older and I don't have a way to build houses for my five children", he said.

"The people are reluctant because of past experiences with resettlement which has been unfair to many", Mr. Chandrasegaran said. "It is up to us to show them that we are serious about sticking to the NIRP, and looking after their needs as well", he said.

Five phases of the power project
The Upper Kotmale Hydropower Project will be implemented through five separate contracts comprising LOT 1 to 5. Pre Qualification will be done for each lot separately and tender documents will be issued to the respective pre qualified bidders where appropriate.

Three Japanese firms are pre qualified for Lot 1 and the tender documents for Lot 1 have been issued to them (see box story). Closing date for Lot 1 tenders was January 26, 2005.

LOT 1 – Preparatory Works
Preparatory works is aimed at preparing the site for the other Lots to commence, including construction of all facilities to the Project Affected Persons. It consists of constructing / providing access roads to various construction sites, construction of permanent facilities for the Engineer and employer, construction of Resettlement facilities for the project affected persons (AP) and 33 KV construction supply provision to all such facilities.

LOT 2 – Main Civil Works
Main Civil Works is the largest lots out of the five lots. More than half of the project cost will be used in this stage to construct civil works.

LOT 3 – Hydro Mechanical Equipment
Hydro mechanical Equipment, of Upper Kotmale Hydropower Project is an International Competitive Bidding (ICB) turnkey contract, to Design, Supply, Erection and Commission the list of equipment mentioned under the Scope of Work and accounts for about 6.4% of the total project cost.

LOT 4 – Electro Mechanical Equipment
Electro Mechanical Equipment is a turnkey contract and the Lot 4 contractor is responsible for the design, supply, installation and commissioning of the equipment listed below under the title scope of work.

LOT 5 –Transmission Line
Transmission Line to connect the UKHP plant to the 220 kV National Grid at the existing Kotmale substation. The scope of work at Kotmale substation was transferred to Lot 4 for better contract administration.
(Source : Upper Kotmale Hydropower Project Website - http://www.ukhp.lk)

Tender bids for the UKHP
Three tenders have been short listed for Lot 1 of the Upper Kotmale Hydropower Project. The tender, which was open from November 4 last year to January 26 this year saw three Japanese companies apply.

The first bidder, Taisei Corporation has bid Rs. 6,803,100,899 while the second bidder Maeda Corporation has bid 5,084,901,256 rupees. Third bidder is the Hazama, Kajima, Kumagi J/V with a bid of Rs. 6,104,571,285.

Tender evaluation was conducted in accordance with the evaluation criteria set out in the Guidelines for Procurement under the JBIC ODA Loans document of October 1999. The consultants handed over their final evaluation report on February 7 2005.

The report stated that Bidder No 1 and 2 had some arithmetical mistakes while Bidder No 3 had recorded some technical deviations. The prices listed above are thus the corrected tender prices. However, the report confirms that all three bidders have shown compliance with commercial terms and conditions and have agreed to complete the scope within the designated time.

The scope of lot 1 of the project includes the construction of access roads to the construction sites and a bridge over the Kotmale Oya at Talawakale, building of engineer's and employer's residential facilities at Niyamgamdora, Watagoda and the Walkers site in Talawakale.

The building of permanent facilities for re-settlers and the construction of a 33 kV transmission line for construction works are also a part of this scope.

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