Sunday Observer
Seylan Merchant Bank
Sunday, 19 February 2006    
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Power projects get set

The government is planning to start work on the Norochcholai coal power project and Upper Kotmale this month while the Ceylon Electricity Board (CEB) will start work on eight power plants during the year. The other sites selected to build power plants are Moragolla, Uma Oya, Ginganga, Broadlansa, Kerawalapitiya and Trincomalee.

Once the Norochcholai plant is commissioned the CEB will be able to provide power at a cheaper rate of Rs. 4.97 a unit.

According to sources at the CEB the people who will be displaced due to the project will get permanent houses with water and sanitation facilities, community centre, Montessori and health facilities, land to cultivate and all facilities to start the cultivation and priority for people who are displaced when recruiting labour during the construction of the plant.

The annual demand for electricity in the country increases by 7-8% and by 2010 there will be a demand to produce 900 megawatts of electricity.

At present 72% of the population has electricity and it is expected to increase up to 80% In the event the new plants are not functioning there will be no option to satisfy the demand other than purchasing power at a higher rate. Already the CEB is facing financial difficulties due to the plants not being commissioned according to schedule.

Coal power can be produced at Rs. 4.97 a unit whereas a unit of thermal power would cost Rs. 7-8. Internationally 60% use coal power. Coal power will be available for another 250 years while thermal power will be available for another 50 years.

Once the plant is established there will be many environmental projects to check environmental conditions. There will be no damage to St. Anne's shrine at Talawila due to the coal power plant, according to CEB sources.

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