The Ceylon Electricity Board Engineers Union yesterday urged the Parliamentary Committee on Public Enterprises to initiate a full probe into the setting up of second power plant at Kerawalapitiya, before a huge amount public money goes waste.
The CEBEU told the COPE Committee that if the second plant is set up as planned it would result in a loss of billions.
They also told COPE that they had heard of threats by the lending agency that that they would suspend funding of a transmission line proposed for the Kerawalapitiya power station, unless their proposal is accepted for the disputed power plant. `If correct this is an extremely unfair condition offered for a loan,` they said.
Meanwhile, a senior official of the CEBEU told The Island yesterday that the project was an unsolicited proposal and not on an open tender process.
`The technology offered by the developer does not suit the CEB requirements. This plant requires to perform as a Peaking Plant - meaning it has to be started an operated for a short duration during night time and then stopped. Once the proposed coal power plant comes into operation, the proposed technology is not capable of meeting this requirement,` he added.
The plant was an unsolicited offer thrust upon the CEB. The CEB was simply asked to evaluate the proposal given by the Mitsubishi Corporation of Japan.
He added: `Even for certain simple modifications requested by the CEB, the manufacturer has quoted unrealistic and exorbitant prices - as high as 10 times the existing price - to discourage technical modification requests from the CEB. The original quoted price was only US $210 million but later it has been increased by more than 70 US$ million arbitrarily. This is a clear result of depending on a single party without competition.`
Meanwhile, CEB General Manager Ranjith Pulleperuma told The Island that the said project was still at discussion level.