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Now, contractor rewarded for delaying launch of power plant

by Ifham Nizam
Despite a delay in the launch of construction work on the Combined Cycle plant at Kerawalapitiya, the contractor, West Coast Power aka Yugadhanavi has received an additional Rs. 350 million from the debt-ridden CEB.
A senior Power and Energy Ministry official told The Island yesterday that in keeping with the agreement between the CEB and the private firm work should have commenced by September 15.
He said Power and Energy Minister W. D. J. Seneviratne and Minister of Power Mahindananda Aluthgamage, though critical of the payment, had failed to stop it.
Minister Seneviratne, contacted for comment last night, confirmed the CEB had settled what he termed capacity charges. However, he could not give an exact figure off hand.
Sources said that the ministers had acknowledged that there could be a delay but never expected the company to demand an additional payment, though the CEB could not be blamed for the delay.
Sources said that some CEB representatives would bring this to the notice of President Mahinda Rajapaksa. Work would now commence on Saturday (October 10).
According to senior officials, the CEB should have asked for compensation from the contractor if he had violated the agreement. But in this case, the violator had been handsomely rewarded, they said.
Minister Seneviratne recently said that the CEB could not give a salary increments to workers in keeping with an agreement due to financial difficulties experienced both by the institution as well as the Treasury.
Senior officials are planning to take up the matter with President Mahinda Rajapaksa. Sources said that in keeping with the agreement, the contractor would have to complete work by January 2010. According to them, the contractor could have easily kept to the schedule as the CEB was mainly dependent on hydro-power during the past few months. Sources warned that the delay could cause trouble early next year when drought conditions were expected.

by Ifham Nizam

Despite a delay in the launch of construction work on the Combined Cycle plant at Kerawalapitiya, the contractor, West Coast Power aka Yugadhanavi has received an additional Rs. 350 million from the debt-ridden CEB.

A senior Power and Energy Ministry official told The Island yesterday that in keeping with the agreement between the CEB and the private firm work should have commenced by September 15.

He said Power and Energy Minister W. D. J. Seneviratne and Minister of Power Mahindananda Aluthgamage, though critical of the payment, had failed to stop it.

Minister Seneviratne, contacted for comment last night, confirmed the CEB had settled what he termed capacity charges. However, he could not give an exact figure off hand.

Sources said that the ministers had acknowledged that there could be a delay but never expected the company to demand an additional payment, though the CEB could not be blamed for the delay.

Sources said that some CEB representatives would bring this to the notice of President Mahinda Rajapaksa. Work would now commence on Saturday (October 10).

According to senior officials, the CEB should have asked for compensation from the contractor if he had violated the agreement. But in this case, the violator had been handsomely rewarded, they said.

Minister Seneviratne recently said that the CEB could not give a salary increments to workers in keeping with an agreement due to financial difficulties experienced both by the institution as well as the Treasury.

Senior officials are planning to take up the matter with President Mahinda Rajapaksa. Sources said that in keeping with the agreement, the contractor would have to complete work by January 2010. According to them, the contractor could have easily kept to the schedule as the CEB was mainly dependent on hydro-power during the past few months. Sources warned that the delay could cause trouble early next year when drought conditions were expected.

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