No final Cabinet approval for Northern islands power projects: Govt.

Thursday, 25 February 2021 02:08 - - {{hitsCtrl.values.hits}}

Power Minister says Treasury has sought more technical details on the proposed solar/wind combined projects
In Jan. Govt. said a Chinese company had won the contract to build the hybrid power plants
IND has expressed concerns about China’s presence in the islands, which are in close proximity to IND

By Chandani Kirinde

Cabinet has not given final approval for a Chinese company to build hybrid power projects on the three northern islands of Delft, Analativu and Nainativu, Minister of Power Dullas Alahapperuma told Parliament yesterday.

He said the Treasury has sought more details regarding the projects and the matter is pending.

The Minister made the disclosure in response to a question raised by SJB MP Chaminda Wijesuriya.

The Government announced in mid-January that the $ 12 million project has been awarded to MS/Sinosar-Etechwin Joint Venture in China, which resulted in India (IND) raising concerns due to the close proximity of the islands to IND, citing possible security threats.

Alahapperuma said that international bids were first called for the Asian Development Bank (ADB)-funded project five years ago, but as none of the bidders were suitable, it was delayed.

Bids were called again in July 2019 and along with the Chinese company, an IND company called Sterling Power Company too had bid to construct the wind/solar power projects on the three islands.

“The lowest bidder was selected by the tender board, but Cabinet is yet to give final approval, as the Treasury has sought more technical details on the projects,” Alahapperuma said.

He said the IND High Commissioner in Colombo has raised concerns over the project being given to China and also shown an interest in submitting a technical report related to the projects.

The Minister explained that residents of the three islands get diesel-generated power supplies at present for a few hours a day and suffer without proper power supplies.