Power and energy sector reforms form prime focus at top level talks

By Ifham Nizam

Power and Energy Minister Kanchana Wijesekera discussed reforms implemented by the government in the electricity and energy sectors, when he and senior government officials met Senior Mission Chief of the International Monetary Fund (IMF) for Sri Lanka Peter Breuer and other IMF officials on Wednesday.

Minister Wijesekera said that they also discussed cost- reflective pricing formulae and electricity tariffs, tariff revisions, forensic audits, balance sheets, impact from taxes, sectoral reforms and related matters.

Officials of the Power and Energy Ministry, Ceylon Petroleum Corporation (CPC) and the Ministry of Finance were also present at the meeting where reforms implemented by the government with regard to the electricity and energy sectors were discussed at length.

Meanwhile, The Island Financial Review learns that the government would go all out on getting the approval for the establishment of a 135 MW solar power project in Sampur, Trincomalee.

Ceylon Electricity Board (CEB) and the National Thermal Power Corporation of India (NTPC) will join hands to construct the solar power project which would be completed in two phases.

It is understood that during the first phase of the project, a 50 MW solar power project with a total investment of USD 42.5 million will be implemented within two years.

The project will also include the construction of a 40 km long 220-kilovolt transmission line from Sampur to Kappalthurai. The estimated cost of this transmission line is reportedly USD 23.6 million.

During the second phase of the project, an additional solar power plant with a capacity of 85 MW will be constructed at a total investment of USD 72 million.

Plans are in the pipeline to construct a 76 km long transmission line with a capacity of 220 kilovolts from Kappalthurai to New Habarana at an estimated cost of USD 42 million, to distribute the electricity generated under phase two of the project.