The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Exclusive: Cricket match-fixers caught in the act in Sri Lanka
Today at 6:53 am by sashimaal

» BFL.N0000 (Bairaha Farms PLC)
Yesterday at 10:39 pm by seek

» MTD Walkers (KAPI)
Yesterday at 10:34 pm by seek

» RIL.N0000 ( RIL Property )
Yesterday at 7:07 am by seek

» Sri Lanka's ex-Sports minister admits sleaze
Sat May 26, 2018 10:49 pm by Ethical Trader

» HNB regrets unauthorized incident at branch and says action taken
Sat May 26, 2018 10:15 pm by Ethical Trader

» Listed Sri Lanka hospitals have strong growth prospects: Fitch
Sat May 26, 2018 10:04 pm by Ethical Trader

» ශ්‍රී ලාoකීය බෞද්ධයාගේ සම්මා දිට්ඨිය
Sat May 26, 2018 10:03 pm by Ethical Trader

» Food for Thought
Sat May 26, 2018 11:24 am by Ethical Trader

» Dividend Announcement
Fri May 25, 2018 6:04 pm by Ethical Trader

» Theory of Everything
Fri May 25, 2018 3:33 pm by Ethical Trader

» In the Meantime, Within Our Shores !
Fri May 25, 2018 9:14 am by කිත්සිරි ද සිල්වා

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Thu May 24, 2018 3:43 am by Jana1

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
Wed May 23, 2018 7:34 pm by sashimaal

» ඊ.ටි.අයි ෆිනෑන්ස් විකිණිමට මහ බැංකුවේ අවසරය
Tue May 22, 2018 9:43 pm by Ethical Trader

» Elsewhere vs SL : Honesty, Social responsibility , Word twisting and Decency
Tue May 22, 2018 8:53 pm by Yin-Yang

» Whats ailing Sri Lanka ? Why we are what we are!
Tue May 22, 2018 6:02 pm by Yin-Yang

» Karl Marx and the Social Sciences
Sun May 20, 2018 11:25 pm by Backstage

» Your Face Is Now in a Database
Sun May 20, 2018 10:47 am by කිත්සිරි ද සිල්වා

» ජපානය: තත්පර විසිපහකට පෙර දුම්රිය පිටත් වූවාට 'සමාවෙන්න'
Fri May 18, 2018 10:10 pm by Ethical Trader

» Sri Lanka still good for global equity investors
Tue May 15, 2018 6:42 pm by Ethical Trader

» Thilak Karunaratne No More at SEC – Mangala Confirms
Tue May 15, 2018 12:48 pm by Ethical Trader

» Cartoon of the day...
Tue May 15, 2018 12:38 pm by Ethical Trader

» How to Mismanage a World
Tue May 15, 2018 12:31 pm by කිත්සිරි ද සිල්වා

» How the British Learnt to Speak Sinhala
Tue May 15, 2018 1:10 am by slstock

» රත්‍රං ආනයන සීඝ්‍රයෙන් ඉහළට – වෙළෙඳ හිඟය තවදුරටත් පුළුල් වෙයි
Mon May 14, 2018 5:53 pm by Ethical Trader

» ඇඟලුම් අපනයන ආදායම – ඇමරිකාවෙන් පහළට යුරෝපයෙන් ඉහළට
Mon May 14, 2018 5:52 pm by Ethical Trader

» බැඳුම්කර විදෙස් ආයෝජන ඉවතට – පෙබරවාරියේ දී ඩොලර් මිලියන 55 ක ශුද්ධ ගෙවීමක්
Mon May 14, 2018 5:51 pm by Ethical Trader

» Flying is the Safest mode of Transport
Mon May 14, 2018 5:49 pm by Ethical Trader

» Student presents thesis in underwear !
Mon May 14, 2018 5:38 pm by Ethical Trader

» රුපියල බේරගන්න ඩොලර් මිලියන 100 කින් මහ බැංකුව මැදිහත් වෙයි
Mon May 14, 2018 1:00 pm by slstock

» Hello and CSE ?
Mon May 14, 2018 12:17 pm by slstock

» LIOC.N0000 (Lanka IOC PLC)
Mon May 14, 2018 11:51 am by CK

» රටේ දේශපාලන ස්ථාවරත්වය ගැන මහ බැංකු අධිපතිගේ මතය මෙන්න
Sat May 12, 2018 12:18 pm by nihal123

» Sri Lanka rupee close flat after US$136mn interventions,stocks steady
Fri May 11, 2018 7:21 pm by The Invisible

» Sri Lanka's rupee showings signs of stabilizing: Central Bank
Fri May 11, 2018 7:17 pm by The Invisible

» Sri Lanka's central bank caught between peg and a hard place
Fri May 11, 2018 7:15 pm by The Invisible

» Sri Lanka to re-price fuel every two months on formula
Fri May 11, 2018 7:11 pm by The Invisible

» ඩොලර් රුපියල් සටන
Fri May 11, 2018 5:39 pm by Ethical Trader

» Age is just a number
Fri May 11, 2018 2:38 pm by කිත්සිරි ද සිල්වා

» Citizen Police Action
Fri May 11, 2018 8:33 am by කිත්සිරි ද සිල්වා

» In every five minutes
Wed May 09, 2018 8:00 pm by spw19721

» ASIY.N0000 (ASIA SIYAKA COMMODITIES PLC)
Wed May 09, 2018 8:06 am by yellow knife

» Sri Lanka's Sampath Bank March 2018 quarter net profit up 41.4-pct
Fri May 04, 2018 8:15 pm by The Invisible

» Sri Lanka rupee gains from intervention, stocks down 0.26-pct
Fri May 04, 2018 8:11 pm by The Invisible

» Help CSE to catch manipulators!
Fri May 04, 2018 5:21 pm by Ethical Trader

» Yahapalanaya in action.
Fri May 04, 2018 4:54 pm by Ethical Trader

» COMB, HNB, SAMP, SEYB, PABC, UBC, NTB, DFCC & NDB
Fri May 04, 2018 11:47 am by The Invisible

» ජනාධිපති කාර්ය මණ්ඩල ප්‍රධානියා අල්ලස් දැලේ
Fri May 04, 2018 6:02 am by Ethical Trader

» Sri Lanka rupee gains after intervention, stocks marginally up
Thu May 03, 2018 10:12 pm by The Invisible

May 2018
SunMonTueWedThuFriSat
  12345
6789101112
13141516171819
20212223242526
2728293031  

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Govt.electrocutes CEB

Go down

Govt.electrocutes CEB

Post by AjithR on Fri Oct 27, 2017 11:06 am


/ Friday, 27 October 2017 00:00

1 30


Dr. Harsha de Silva lambasts State-run utility over delaying power plants, says Govt. cannot work alone
Says holdup with LNG plant due to CEB engineers refusing to sit on tender and procurement boards
Admits Govt. is “frustrated” by bottlenecks, final warning given to deliver by next Wednesday
Calls on CEB to put aside differences with PUCSL, wants it to stop “running away” from responsibilities
CEB officials contend Govt. decision-making fragmented, appeals for institutional cooperation
Govt. considering risk adjusted capital instruments to encourage private sector investment
By Uditha Jayasinghe

National Policies and Economic Affairs Deputy Minister Dr. Harsha de Silva yesterday took the Ceylon Electricity Board (CEB) to task over delayed power projects and promised tough action unless the State-run utility provider followed policies, acknowledging the Government was “frustrated” by the bottlenecks created.

In a display of chagrin, the Deputy Minister lambasted the CEB for not participating in an energy forum organised by regulator Public Utilities Commission of Sri Lanka (PUCSL) and criticised it for not sitting on tender and procurement boards. He also charged that the CEB had failed to roll out plans to build 385 MW of solar power plants, 245 MW of wind power and 450 MW of LNG despite repeated warnings that Sri Lanka could face a power shortage.

“There is no point in entertaining these kinds of people. So let me on behalf of my minister, the Prime Minister, express our deep disappointment that the Ceylon Electricity Board (CEB) has been very unprofessional by not participating in this important forum and we will deal with this appropriately in the time to come,” he said.

He also spoke extensively of the gridlocked Sampur power plant, which the Government decided would be changed to an LNG facility more than a year ago but has since failed to award a tender to kick-start the project.



Dr. de Silva put most of the blame for the delay on the CEB highlighting a difference of opinion between the State power monopoly and the PUCSL.

“What has happened to the LNG procurement? Why is it stuck? Is it the Government’s fault? Is it the CEB’s fault? Whose fault is it? I’m not here to place blame but we need to find what the problem is so we can provide solutions. I have sat at multiple Cabinet Committee on Economic Management (CCEM) meetings where many excuses have been given. Now what I understand is that no CEB engineer is sitting on the procurement or tender boards. That’s a hell of a how-do-you-do. Are we being held to ransom by some people? Then the accusation comes back to the Government saying the Government doesn’t want to do it because it wants to procure electricity at high prices. But it is not the decision of the minister in charge or the prime minister to go ahead and award a tender. It must be done by those who have been appointed to do it. If those who are appointed to do it are absconding then how is it the fault of the Government?” he said.

“The CEB is running away from responsibilities the institution has been tasked with. A final warning has been given that by next Wednesday it has to be done. If it’s not done then we will see because this kind of activity cannot go on and on. The persons who pay the price are the people of this country.”

During question time CEB officials present at the forum responded to Dr. de Silva explaining that the CEB had completed its duty and the reports had been represented to the relevant Cabinet procurement committees.

They also pointed out that Government decision-making had been fragmented and appealed to encourage other government bodies to work in tandem with the CEB. One official also pointed out that land for some power plants had not been released by the relevant authorities resulting in implementation delays. The officials did not wish to be quoted despite being approached by the Daily FT at the end of the forum.

At the end of the forum the Deputy Minister struck a more conciliatory tone, appealing to the CEB to cooperate with other stakeholders to provide reasonably priced power to the masses and assist in fostering development. He also acknowledged that the Government has to take responsibility for failing to carry out reforms at the correct time, recalling his own experiences in being part of policymaking during former President Chandrika Bandaranaike Kumaratunga’s tenure.

Dr. de Silva also welcomed private sector competition on wind power pointing out sharp price reductions at the end of the latest round of tenders. He also proposed risk adjusted capital instruments to boost investor confidence and said he would consider partial risk guarantees such as those provided by multinational development organisations like the Asian Development Bank (ADB) to support regulatory risk for private investors. However, during discussions he noted that the Government was open to renegotiating existing power purchase agreements with companies if they were seen to be excessively costly.

“The issue that we have at hand is a complex one. It is an important issue. The losses that the CEB is making, the prices consumers are paying, the inefficiencies at which we are operating are all making Sri Lanka uncompetitive. It is like kick-starting a motorcycle with an empty gas tank. What I am trying to stress here is that this problem cannot be solved only by the Government. We must understand that we have some serious issues to deal with and the solution must be developed by multiple stakeholders.”

“In times of crisis strong people take responsibility. If the responsibility is too much, if the challenge is too much running away from sitting in tender boards, running away from not participating is not the solution.”

Sri Lanka has done well over the years in reaching its access targets, he noted. But access itself is not enough as power has to be reliable and affordable, the Deputy Minister went on to say, acknowledging that Sri Lanka’s current capacity was inadequate to meet its ambitious economic growth goals.

The Harvard Centre for International Development was working with the Government to understand the constraints that Sri Lanka was facing in its development drive and has flagged energy as “fairly stable” but over time could become a “binding constraint” if supply was not developed fast enough.

Energy growth through sustainable measures is a key development challenge as dependence on non-renewables makes Sri Lanka unhealthily dependent on imports.

In the past decade petroleum imports have accounted for 20% of all imports as between 2005 and 2015 as much as 41% of demand has been met by thermal energy. Up to September 2017 Sri Lanka’s energy breakdown was coal 38%, thermal 37%, hydro 17% and non-conventional renewable only 7%. Dr. de Silva also emphasised that the Government’s stance on moving towards renewables was unlikely to change despite inherent challenges.

“Losses of State-Owned Enterprises in energy are not entirely their fault. It is not because the people are inefficient that they keep losing money. It is because, by and large, they are unable to sell at a price where they can recover cost. However, what is cost? Can you produce cheaper energy? We need to find answers. The estimated loss of the CEB for the first half of 2017 is Rs. 30 billion; the CEB owes the Ceylon Petroleum Corporation (CPC) about Rs. 40 billion for the first nine months of this year. Taxpayers are paying this money.”

http://www.ft.lk/top-story/Govt--electrocutes-CEB/26-642319
avatar
AjithR

Posts : 249
Join date : 2014-09-15

Back to top Go down

Re: Govt.electrocutes CEB

Post by කිත්සිරි ද සිල්වා on Fri Oct 27, 2017 2:27 pm

Thanks Ajith.
(This again proves my assertion that this is a bunch of NATO boys. Being a responsible minister, he should get his facts right before start lambasting others). Shocked
avatar
කිත්සිරි ද සිල්වා
Top contributor
Top contributor

Posts : 7239
Join date : 2014-02-23
Age : 60
Location : රජ්ගම

Back to top Go down

Re: Govt.electrocutes CEB

Post by Ethical Trader on Fri Oct 27, 2017 2:46 pm

When all professionals like doctors and CEB Engineers try to dictate the Govt., do what they like and not fall in line with Govt policy, privatization is the answer.
avatar
Ethical Trader
Top contributor
Top contributor

Posts : 3691
Join date : 2014-02-28

Back to top Go down

Re: Govt.electrocutes CEB

Post by කිත්සිරි ද සිල්වා on Fri Oct 27, 2017 3:20 pm

There is help available in situations like this from outside and world renowned entities.
Rather than flapping their traps, they should seek help from them.
Ethical Trader wrote:When all professionals like doctors and CEB Engineers try to dictate the Govt., do what they like and not fall in line with Govt policy, privatization is the answer.
avatar
කිත්සිරි ද සිල්වා
Top contributor
Top contributor

Posts : 7239
Join date : 2014-02-23
Age : 60
Location : රජ්ගම

Back to top Go down

Re: Govt.electrocutes CEB

Post by AjithR on Mon Oct 30, 2017 9:53 pm

Fully agreed with you Kithsiri,
avatar
AjithR

Posts : 249
Join date : 2014-09-15

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum