Government
gearing to face power crisis in 2009 - Treasury Secretary
Hiran H.Senewiratne
Daily News 2006/08/31 |
 POWER
SECTOR: The Government is focusing to address immediate challenges
in the power sector to face the power crisis in 2009. Funding
on power generation, distribution and transmission are important
factors to be addressed promptly to face the predicted crisis,
Treasury Secretary Dr P.B Jayasundera said.
"We have not utlised funds on the power sector reforms
which have expired due to the long delay. The funding arrangements
on power generation will be put into operations mainly on immediate
challenges in our power sector plan at this junctutre,'' Dr
Jayasundera told a media conference.
A high level mission headed by Asian Development Board's Director
General for South Asia, Kunio Senga, spent two days of intense
discussion with the Government looking at concrete measures
to improve ADB's funding portfolio.
Responding to a Government request, ADB and the Government jointly
identified nearly US $ 71 million of ADB projects to be immediately
cancelled or reallocated to improve the ADB portfolio.
Dr. Jayasundera addressing along with the visiting delegation
said that revision of the portfolio of ADB funds is to ensure
the active cost- effective portfolio for development in the
medium to long terms. Each project is being studied case by
case to ensure the success of development projects.
He said that we have to create non-performing or adequately
performing projects into satisfactory and operational levels.
Therefore, the Government took a bold decision on the future
power sector reforms by initiating major power projects like
Kerawalapitiya power plant, which is now in progress.
ADB Director General, South Asia Regional Department Kunio Senga
said that ADB's active portfolio in Sri Lanka stands at 47 loans
and grants totaling US$1.6 billion. During this mission ADB
and the Sri Lankan Government took a close look at our portfolio
and has had an intensive dialogue on efficient implementation
of projects.
He said they also agreed on actions to facilitate effective
implementation of projects such as review of contractor performance
and increasing adoption of procedures by the Government.
"This is a significant move because it will allow funds
to be reallocated to priority projects, for example, water supply
expansion in Polonnaruwa, Batticaloa and eventually Muttur or
be canclled. We have also identified a number of actions that
will help slow moving projects to get back on track. ADB's proportion
accounts for only about six per cent of its active portfolio.
Senga said that of particular significance is the cancellation
of a US $ 30 million second tranche of the power sector form
programme. It has delayed a number of times this decision, as
we seemed close to reaching a consensus on the way forward.
They also expect to assist in power sector reforms when the
Government implements the national economic strategy in the
future, Senga said.
ADB South Asian Energy Director Thevakumar Kandiah said that
they remain convinced that increasing the power generation capacity,
addressing institutional reforms and restructuring the finances
of CEB are much needed for the financial sustainability of the
sector.
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