Sri Lanka power utility engineers delay industrial action till May 08

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ECONOMYNEXT – Engineers at Sri Lanka’s state-run Ceylon Electricity Board said they were delaying industrial action till May 08, until a Buddhist holiday period was over.

CEBEU had earlier given notice to the management of the CEB and the power ministry that they would work-to-rule from April 20.

“We had a number of requests not to work-to-rule from April 20, because Vesak week starts on April 30,” CEBEU President Saumya Kumarawadu told reporters.

“If we start work-to-rule power outages cannot be prevented. So the Union decided yesterday to delay action till May 08.”

CEBEU says the regulator had delayed approved of their latest power plan and the cancellation of a coal plant in 2015 by the President had pushed the country into a crisis.

Even earlier plants in the CEB’s approved power plan was delayed. (Colombo/Ma18/2018)

http://www.economynext.com/Sri_Lanka_power_utility_engineers_delay_industrial_action_till_May_08-3-10400-8.html

 

කැබිනට් වර්ජන, සංශෝධන අස්සේ නායකයෝ පඹගාලක – Lankadeepa

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Sri Lanka warned against LNG ‘take-or-pay’ deal; call for competitive bidding – EconomyNext

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ECONOMYNEXT – Sri Lanka’s power engineers warned that a government-to-government deal for a ‘free LNG terminal’ was a ploy by developers to eliminate competitive bidding and secure a long-term liquefied natural gas procurement deal.

Sri Lanka’s cabinet has already approved a controversial unsolicited proposal brought forward by the Ministry of Development Strategies and International Trade for Indian and Japanese companies to set up an LNG terminal by giving the firm the right to buy fuel for up to 20 years.

Unsolicited Take-or-Pay

The unsolicited terminals were to be built on the basis of ‘take-or-pay’ where the Ceylon Electricity Board would be committed to buy LNG or pay for unused volumes, even when rains come.

Engineers at the Ceylon Electricity Board said in a letter to the government and members of the parliament that the unsolicited deal appeared to have been done without consulting the Ministry of Power and Energy.

The two coalition partners of the current administration strengthened the case for LNG soon after coming to power with President Maithripala Sirisena cancelling a planned coal power plant which was close to being built.

The regulator also pushed up costs of coal by coupling a pump storage plant to claim that LNG was cheaper, as critics cried foul.

Several unsolicited LNG plants were then pushed by interested parties, on a ‘government-to-government’ basis though only one party was chosen.

Around the time there was greater acrimony inside the coalition and charges against an economic committee that gave the nod to the deal were ratcheted up, according to observers.

By-passing competitive procurement

An amendment to the electricity act brought to section 43 of the electricity act in 2013 which permitted ‘government-to-government’ deals is being used to by-pass competitive bidding, critics say.

The CEB engineers said there were enough private investors ready to set up LNG terminals and competitive bidding should be used to procure the terminal.

“In an occasion where there are a lot of investors keen on investing in LNG power plants and supply of LNG, most appropriate way of implementing such proposals is through competitive bidding,” the engineers union wrote in a letter to the President, Prime Minister and members of parliament.

“If there are concessionary government to government loan commitments, it is the responsibility of the government to channel those funds to other sectors which cannot attract investments.”

The deal approved by the cabinet as reported publicly involves a terminal with 2.7 million tonnes per annum (MTPA), where the developer will have be paid a penalty for any unused capacity by the CEB.

Hedging Deal

CEB engineers warn that the penalties from the ‘take-or-pay’ LNG deal may dwarf those of oil-hedges that went wrong in 2008 forcing state-run Ceylon Petroleum Corporation to buy oil at high prices.

“When there are unfavorable terms like this in a twenty year contact, it is very difficult to avoid the country being pushed into an economic crisis,” the CEBEU warned.

“The loss incurred by a contract like this can be thousand times higher than that of the recent hedging deal signed by the CPC for fuel purchase.”

The CEBEU said the LNG requirement will not exceed 0.6 MTPA

LNG requirement of the country won’t exceed 0.6 MTPA for next ten years with planned new LNG plants and conversion of exiting thermal plants to LNG.

“This LNG demand can vary from 0.3 MTPA under very wet condition to 0.8MTPA under extreme dry conditions in the country,” the Union said.

“Under these circumstances, we also wish to know about the experts who recommended purchasing such a huge volume of LNG like 2.7 MPTA for a period of twenty years.”

Current LNG prices however are much lower than before the commodities bubble broke in 2008/2009 and the gap with coal has also narrowed.

There is also speculation that the attempt to push Sri Lanka to import LNG through take-or-pay deals with LNG importing countries may also be triggered by a need to pass on losses from long term contracts made before LNG prices fell.

Red Light

CEB engineers wrote that all unsolicited ‘take-or-pay’ deals involved the following characteristics.

1.Great reluctance for competitive bidding.

2. Bringing in investment proposals so that they get the maximum benefits (to the promoters) ignoring the requirements of the country.

3. Investment proposals being brought forward by private companies under the label of government to government concessionary contracts.

4. Establishment of joint venture companies allocating of a meagre share for Sri Lanka in those companies, in order to escape from competitive bidding procedures and other relevant laws & regulations.

Analysts say even Power and Energy Ministry lacks the capacity to properly evaluate the complexity of the proposals and contracts involved. (Colombo/Mar10/2018)

http://www.economynext.com/Sri_Lanka_warned_against_LNG__take_or_pay__deal;_call_for_competitive_bidding-3-10324-8.html

CEB union backs LNG for power, but warns of pitfalls in unsolicited contracts -CT

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“The Ceylon Electricity Board Engineers’ Union (CEBEU) has urged the Government to draw up a strategic plan to use liquefied natural gas (LNG) in meeting the country’s energy demand instead of adopting ad hoc measures from time to time.

In a letter to the President, the Prime Minister, Ministers and MPs, the union says that it is “high time” to choose LNG as a source of energy in the electricity general mix of the country. They point out that the CEB’s Least Cost Long-Term Generation Expansion Plan 2018-2037 calls for LNG power plants with a total capacity of 1,500 megawatts to be added to the system.”

Read More: http://www.sundaytimes.lk/180401/news/ceb-union-backs-lng-for-power-but-warns-of-pitfalls-in-unsolicited-contracts-288391.html

FSRU for LNG taking country into econ crisis – CT

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By Niranjala Ariyawansha

Sri Lanka is heading into a severe economic crisis due to the Government’s decision to establish a Floating Storage Regasification Unit (FSRU), for a massive supply of 2.7 million tons of Liquefied Natural Gas (LNG) per annum without calling for open tenders, energy experts have warned.

They emphasize that if this unsolicited decision is implemented, the country will have to incur a loss, thousand times more……than the loss it had to face due to the notorious Hedging deal.

The Government has signed Memorandums of Understanding with both, India and Japan to supply Sri Lanka’s requirement of Liquefied Natural Gas for the next 20 years.

According to these Memorandums of Understanding, India will hold 47.5 per cent of the shares in the Floating Storage Regasification Unit, which is being constructed in Kerawalapitiya, while Japan will hold 37.5 per cent and Sri Lanka the balance 15.

Meanwhile, the Ceylon Electricity Board Engineers’ Union (CEBEU) has requested the Government to focus its attention on this serious decision which cannot be reversed. They had sent a letter regarding this issue, on 20 March, to the President and all Parliamentarians.

The letter states: “Unlike diesel or coal, LNG cannot be purchased in varying quantities depending on the time to time requirement and also cannot be easily stored. Due to that, the LNG supply chain depends on very complex technical trade constraints. In these proposals, including the Indo – Japanese proposal, contracts are expected to be signed for the purchase of a minimum quantity of LNG per annum for a term as long as 20 years (Take or Pay Contracts).

The nature of such contracts is that if you fail to buy the minimum quantity agreed in the contract, you still have to pay for the total quantity. When there are unfavourable terms like this in a twenty-year contract, it is very difficult to avoid the country being pushed into an economic crisis.”

Under these circumstances, they have further stressed in their letter, “We request that arrangements be made to formulate a strategic plan on the supply and use of LNG with the assistance of a group comprising experienced local and foreign experts in this field and to approve proposals for supply of LNG, LNG terminals and LNG power plants only if they are in conformity with the above plan and selected through competitive bidding.”

They point out that to operate the Thermal power plants, which work on diesel and are located close to Colombo, using LNG and when considering that the LNG power plants, proposed by the Ceylon Electricity Board, in their Long-Term Power Generation Plan, the country only needs 0.6 million tons of LNG for a year.

They have calculated that it is only such a quantity that will be required for the entire period of the forthcoming 10 years as well.

However, during a year when there is good rainfalls, this requirement will fall to 0.3 million tons. Similarly, in a year when dry weather prevails it can vary and increase up to 0.8 million tons, they point out.

While the circumstances are thus, they ask who those experts were who recommended that such a massive supply, of up to 2.7 million tons is required for this country.

The CEB and the Ceylon Petroleum Corporation had both expressed their opposition to creating such an extensive Floating Storage Regasification Unit to supply energy from Sri Lanka to a country such as India.

The CEBEU further emphasized, in their letter, “The Government’s attention must be focused on possible threats to national security when allowing a company of Indian origin to control the supply of LNG for generation of a larger share of the country’s electricity demand.”

They also stress the fact that, prior to making this decision, the Government had not taken into consideration that the main buyers of LNG would be the CEB, the Ministry of Power and Renewable Energy or the Ministry of Petroleum Resources Development.

The letter finally states that in an instance where there are a lot of investors keen on investing in LNG power plants and the supply of LNG, the most appropriate way of implementing such proposals, is through competitive bidding. If there are concessionary Government to Government loan commitments, it is the responsibility of the Government to channel those funds to other sectors which cannot attract investments.

 

http://www.ceylontoday.lk/print-edition/2/print-more/1883

ළඟදීම විදුලි අර්බුදයක් – ඉරිදා ලංකාදීප

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විදුලිය සැපයුමට කැපිල්ල දාන නියඟය – දේශය

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http://www.deshaya.lk/article/43/features/6418/%E0%B7%80%E0%B7%92%E0%B6%AF%E0%B7%94%E0%B6%BD%E0%B7%92%E0%B6%BA-%E0%B7%83%E0%B7%90%E0%B6%B4%E0%B6%BA%E0%B7%94%E0%B6%B8%E0%B6%A7-%E0%B6%9A%E0%B7%90%E0%B6%B4%E0%B7%92%E0%B6%BD%E0%B7%8A%E0%B6%BD-%E0%B6%AF%E0%B7%8F%E0%B6%B1-%E0%B6%B1%E0%B7%92%E0%B6%BA%E0%B6%9F%E0%B6%BA

Work to rule protest by CEB Engineers -DailyMirror

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The Engineers of Ceylon Electricity Board (CEB) have decided to engage in a work to rule trade union action within two weeks.

The Chairman of the Ceylon Electricity Board Engineers Union Saumya Kumarawadu said their intended trade union action was decided upon the non-responsiveness of the CEB with regard to their proposals on executing long-term power generation plants and Liquefied Natural Gas (LNG) power generation plants.

CEB authorities show a lethargic attitude to install long-term power generation plant but are interested in plans to buy electricity from profiteering private companies and gain commissions, he alleged.

He further said a letter has also been sent by the union to President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe stressing the need of stipulating an LNG power plan suitable for the country and preparing an appropriate procedure to be adapted in purchasing electricity thus generated. (Dayaseeli Liyanage)

2018-04-08

http://www.dailymirror.lk/article/-Work-to-rule-protest-by-CEB-Engineers-148432.html

විදුලි වර්ජනයකුත් අත ළඟ – Mawbima

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http://mawbima.lk/print20170621MB20171230.php?id=11748

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විදුලි අර්බුදයක් – ජල විදුලි නිෂ්පාදනය සියයට 15 ට බසී – Hiru News

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The Ministry of Power and Renewable Energy said that hydropower generation has become a challenge due to the prevailing dry weather conditions.

Speaking to our news team, its media spokesman, Sulakshana Jayawardena said that water levels in the six main reservoirs used for the generation of hydropower including Kotmale and Castlereigh, have dropped to 50%.

He said that hydropower generation has declined to 15%, as a result.

President of the Ceylon Electricity Board’s Engineers’ Union, Saumya Kumarawadu said that the lack of a proper plan has resulted in high dependency on hydropower.

The media spokesman of the Ministry of Power and Renewable Energy, Sulakshana Jayawardena said that the construction of a new thermal power plant under the long-term power generation plan will be delayed by about another year due to delays in the tender process.

However, President of the CEB Engineers’ Union, Saumya Kumarawadu said that power cuts are unavoidable in future due to this situation.

Public Lecture Series by Tr and Gen Planning Branch of CEB

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Transmission and Generation Planning Branch of CEB has recently taken an initiative to hold a public lecture series on ” Present status and the Future of Sri Lankan Power System”. The prime objective of the these lectures are to raise the general awareness among the engineering fraternity on the latest developments, planning process and the future of Sri Lankan power system. This is conducted with the aid of Ceylon Electricity Board Engineers Union with the intention of updating and enhancing the knowledge on the topic among engineering community while clarifying common misconceptions.

The first lecture was conducted for the National Agenda Committee of The Ceylon Chamber of Commerce on 5th Dec 2017.

The second lecture of the series was held at IESL with nearly 100 participants on 16 Jan 2018.

The third lecture was held at the University of Moratuwa on 22 Feb 2018 with participation of students and acedemics.

Another two such lectures have already been planned to be held at the department of Electrical Engineering,  University of Peradeniya and University Ruhuna of within the March,2018.


CT: Power plant tender may cause Rs 40B loss to CEB

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By M Rishar M Saleem

As the tug-of-war rages between the Ceylon Electricity Board (CEB) and Public Utilities Commission of Sri Lanka (PUCSL), causing delays to the controversial 300 MW Kerawalapitya LNG power plant, the adverse impact falls yet again on Sri Lanka’s general public.

As reported before by Ceylon FT, the tender procedure has raised the eyebrows of many stakeholders, who harbour doubt in the Government’s sincerity in this tender process. The Government’s self-declared ‘good governance’ policy is shattered, they complain, as the awarded tender violates basic tender processes and is likely to cause colossal financial losses to the country.
Reliable sources reveal the deliberate suppression of facts has led to awarding the tender to a particular ‘blue-evil-eyed’ bidder, which will incur over Rs 45 billion in loss to CEB.

The project has become notorious for the delays in its implementation, which have dragged on for over a year. With a looming power shortage in 2019, it looks as though the impending election year for politicians will be a black-out year for the public.

With the cancellation of Sampur coal-fired power project, a Request for Proposals (RFP) for the Kerawalapitya LNG project was issued in 2016. A total of eight applications for private investment were received from Sri Lanka, Korea, Singapore, China, and Bangladesh by April 2017.
Having rejected two bidders in June 2017, the Technical Evaluation committee (TEC) recommended opening tenders of the other six bidders. The Standing Cabinet Appointed Procurement Committee (SCAPC) overruled the TEC’s decision and decided to open only the bid by the Samsung Corporation of Korea. Despite all opposition, SCAPC had to reject Samsung’s bid on the grounds that it failed to include all important tariffs. Cabinet approval was then sought to open the five remaining bids and approval granted forthwith.
With a newly-appointed SCAPC, after a few months of delay in September 2017, other bids were opened.
The lowest bidder at Rs 14.98 was the 100% Sri Lankan company Lakdhanavi Ltd, with similar-capacity power plant installation experience in the past. The second-lowest bid was at Rs 15.97, and SCAPC recommended proceeding with negotiation with the lowest bidder.

Due to sinister moves by interested parties, this decision was stopped, citing the excuse that Lankdanavi was a subsidiary of CEB, and the tender was to be awarded to the expensive bidder, although this attempt was unsuccessful.

Strangely, in early January 2018, the Power Ministry wrote to the Ministry of Finance seeking clarification whether certain tax exemptions were available to Lakdhanavi with respect to this project. The very next day the Finance Ministry replied (in a letter having a public-private formatting style) that the Bidder (Lakdhanavi) is liable for taxes. Then the TEC withdrew its first report and submitted another, disqualifying Lakdhanavi for assuming “unavailable” tax concessions and recommended the second-lowest bidder as the Lowest Responsive Bidder.

Adding more confusion to an already-confusing matter, two weeks later, the Finance Ministry, in response to a clarification by Lakdhanavi, made a U-turn and admitted that tax concessions were still applicable (this time in a public letter-writing format) but said they were “suspended” on a “policy decision”. However, apparently nobody – not the CEB, nor the Ministry of Power – had been informed about this “policy decision,” putting the surreptitious plans of lobbyists in a spin.

All bidders except the second bidder had assumed the tax exemption. What surprises everybody is that even if the two lowest bidders were compared on an equal footing by adding taxes for Lakdhanavi Tariff as well, the latter is still comfortably the lowest.
Officials now believe TEC’s disqualification of Lakdhanavi for invoking tax concessions available in law is wrong and could be challenged in courts, delaying the project beyond redemption.

The country is thus surely set to have the presidential election amidst power cuts.
The irony is that, according to CEB sources, the entire tax exemption assumed by Lakdhanavi is only Rs 2 billion, whereas if CEB has to buy power from the next bidder, CEB will pay Rs 45 billion more.

We all know the Bond scam robbed the nation of Rs 11 billion. Are we seeing a scam of much greater dimensions in the making?
CEB is already set to make a loss of Rs 80 billion this year. It will only be made worse by selecting the wrong bidder in the Kerawalapitiya combined-cycle project. You, me and the man on the street will pick up these losses of CEB, by way of increased taxes and a higher cost of living. Does anybody have the interest of the Sri Lankan electricity consumer at heart?

22/01/2018 Lankadeepa

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නොරොච්චෝලේ පරිසර ගැටලු විසඳීමට අදාළ ගිවිසුම් අත්සන් කිරීමට එකඟතාවය

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?????????? ???????? ????? ????? ????? ??????? ???? ???????? ??????, ???? ???????? ??????? ????, ??? ?????? ????? ???????? ?? ????? ????? ???????? ????? ?????? ???????? ?????? ?????? ?????? ?? ?? ????.

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\http://siyathanews.lk/archives/8521

ජනපති උපදේශකයෙකු පෞද්ගලික විදුලි බලාගාරවලට අත වනනවාලු

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?????? ???? ????

????? ??? ????? ???? ???? ?????? ??? ??????? ????? ?? ???????? ?????? ????????? ?? ???????? ????? ??????????? ?? ???? ???????? ?????? ?????? ?????? ???????? ???? ???? ???????? ?????  ???????? ????? ????????????? ?? ??????????? ??????? ?????? ???? ????.

??? ??????? ????????? ??? ????? ??? ??????? ??????????? ????????????? ??????? ????? ???? ???????? ?? ?????????? ??????? ???????????? ????? ???????? ???????????? ??????? ??????? ???????? ???????? ????. ????? ??? ????????? ??? ? ?????? ?? ?????? ??? ?????? ??????????? ?????? ?????? ???????? ???? ?? ????? ????? ????.

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??? 2030 ????? ?????????? ?????? ?????? ????? ??????? ?????????? 50% ?? ???? ?????????? ??????? ???????? ?? ???? ????? ?? 100% ?? ????? ?????????? ??? ????????? ??????? ???? ???????? ???? ? ??? ????? ????????? ???? ?????? ????????? ?? ????? ????? ???? ? ?? ?????? ?????????? ????? ??.

http://www.lankadeepa.lk/latest_news/%E0%B6%A2%E0%B6%B1%E0%B6%B4%E0%B6%AD%E0%B7%92-%E0%B6%8B%E0%B6%B4%E0%B6%AF%E0%B7%9A%E0%B7%81%E0%B6%9A%E0%B6%BA%E0%B7%99%E0%B6%9A%E0%B7%94-%E0%B6%B4%E0%B7%9E%E0%B6%AF%E0%B7%8A%E0%B6%9C%E0%B6%BD%E0%B7%92%E0%B6%9A-%E0%B7%80%E0%B7%92%E0%B6%AF%E0%B7%94%E0%B6%BD%E0%B7%92-%E0%B6%B6%E0%B6%BD%E0%B7%8F%E0%B6%9C%E0%B7%8F%E0%B6%BB%E0%B7%80%E0%B6%BD%E0%B6%A7-%E0%B6%85%E0%B6%AD-%E0%B7%80%E0%B6%B1%E0%B6%B1%E0%B7%80%E0%B7%8F%E0%B6%BD%E0%B7%94/1-523324

 

News First: විදුලි සේවක ගැටලු සෙවීමට පංච පුද්ගල කමිටුවක්

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???????? ????? ?????????? ?????? ?????? ??????????? ???? ?????? ????? ???????? ??? ?? ????.

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විදුලි සේවක ගැටලු සෙවීමට පංච පුද්ගල කමිටුවක්


CEB strike underway, strikers convened to Colombo – Hiru News

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http://www.hirunews.lk/sinhala/181377/%E0%B7%80%E0%B6%BB%E0%B7%8A%E0%B6%A2%E0%B7%92%E0%B6%AD-%E0%B7%80%E0%B7%92%E0%B6%AF%E0%B7%94%E0%B6%BD%E0%B7%92-%E0%B7%83%E0%B7%9A%E0%B7%80%E0%B6%9A%E0%B6%BA%E0%B7%92%E0%B6%B1%E0%B7%8A-%E0%B6%9A%E0%B7%9C%E0%B7%85%E0%B6%B9%E0%B6%A7

CEB strike underway, strikers convened to Colombo

The Joint Trade Union Federation says that it has invited all the employees of Ceylon Electricity Board who are on strike to head to Colombo for a demonstration.

The convener of the Federation, Ranjan Jayalal told our news team that an indefinite strike was launched this morning (Jan. 18).

The CEB headquarters was surrounded by workers last night alleging that the management has increased the salaries only of the administrative staff.

Later, CEB chairman, W. B. Ganegala was held hostage in his office and police had to intervene to rescue the chairman.

The CEB workers launched the strike this morning accusing that they were assaulted during last night’s demonstration.

Meanwhile, chairman of the Electricity Engineers’ Association, Saumaya Kumarawadu said that CEB workers had been recently awarded a salary increment of 25%.

The spokesperson for the Ministry of Power and Renewable Energy, Sulakshana Jayawardana said that 90% of CEB workers have reported to work today despite the ongoing strike.

http://www.hirunews.lk/181377/ceb-strike-underway-strikers-convened-to-colombo

GM CEB Q&A session in LME Magazine

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Two page Q & A based article has been published in the LMD January 2018 issue (please
refer page 152 & 153 ofthe digest LMD) with the answers from rhe General Manager, CEB.

Click on the image to reed the pdf.

thumbnail of GM CEB on LMD Mag