In addition to the immense losses already incurred by the Ceylon Electricity Board (CEB), it would incur an additional loss of a staggering Rs.7.6 billion annually after the Sampur Coal Power Plant is fully operational, the Coalition against Corruption said today.
Despite Government assurances that the people’s financial burdens resulting from the electricity tariffs being increased would be eased after the construction of the power plant, the coalition said the people were likely to pay a further Rs.1,525 on their electricity bills following the completion of the Sampur power plant.
“This is due to the fraudulent nature of the agreement with the Indian company which was hired to construct the power plant,” coalition spokesman Saman Ratnapriya charged.
He said if the power plant was built according to international standards the rate of efficiency of the power plant should be 40%, however in the agreement with India, the CEB had agreed to a reduced rate of 33% efficiency, which meant the country would incur an annual loss of up to Rs.4.9 billion.
Mr. Ratnapriya said the annual expenditure incurred on maintaining the power plant would increase up to US$32 million which meant that the CEB would incur a loss of Rs.1.2 billion annually.
He said if adhered to internationally recognised standards the return on investment of a 500 megawatt power plant such as the Sampur power plant should be 18% in US dollars annually but instead it had been reduced to 12% in the CEB agreement which would result in a loss of Rs.1.2 billion. (Olindhi Jayasundere)