News
Uma Oya Project delayed further due to lack of funds
The Uma Oya project Pic by Indika Handuwala
The completion of the Uma Oya Multipurpose Development Project is set to be further delayed, as US$ 12mn is required to complete the remaining five per cent of the scheme, a senior official said.
Funds were requested through the Power and Energy Ministry from the Treasury but there has been no response, said Project Director Sudantha Elakanda. This will delay the possibility of adding a further 120 MW to the national grid.
The money was needed to pay for expertise, essential equipment and material for final testing. An additional Rs 1.5 billion was required for salaries of local employees and related matters. The project was due to be completed by May 25 this year.
An additional 120MW would ease the burden on the Ceylon Electricity Board to find fuel for thermal power plants, Mr Elakanda said. The Rs 1.5bn were for subcontractor payments. Farab Co of Iran was the principal contractor. If funding was released, the project could close by December, after which the plant could be commissioned.
“A cabinet paper on this has already been submitted, and we are hopeful that it would draw the attention of the government,” he said.
The project was to be commissioned in 2015 but delayed by a leak. The original agreement was signed in 2008, estimated to cost US$ 529mn — US$ 450mn from the Export Development Bank of Iran and the rest from Sri Lanka.
Due to sanctions imposed by the US on Iran, however, funding was affected and the Treasury had to take over a majority of the financing.
The project aims to provide drinking water to Moneragala, Badulla, Hambantota and Wellawaya; and irrigation to Wellawaya, Thanamalwila and Lunugamvehera in addition to generating power.
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