Sri Lanka to start 20MW Jaffna wind power project after delays
ECONOMYNEXT – Sri Lanka’s Ceylex Engineering says it will complete work on two 10MW wind power plants in Jaffna before year-end after the 5 billion rupee project was beset by long delays due to difficulties in finding land.
Ceylex Engineering won the international tender in August 2017 to build and operate the wind power plants, and supply power to Sri Lanka’s state utility Ceylon Electricity Board.
The project was delayed because the CEB couldn’t acquire land in Jaffna due to objections by the people living in the area.
"It’s difficult for a state institution to acquire private properties especially when owners don’t accept government valuations," says Nuhuman Marikkar, Deputy Chief Executive Officer at LTL Holdings. Ceylex is an affliated to LTL Holdings.
"So the group decided to buy land in suitable areas which we will lease back to the CEB," he said.
Analysts have always said private power producers should be allowed to acquire land themselves in order to avoid bureaucratic delays.
Ceylex will sell electricity to the CEB at around 12.50 a unit.
The two plants will comprise eight 2.5MW wind turbines.
LTL Holdings is a unit of the state power utility CEB, which holds a 63 percent stake.
The balance is held by management-led private investors who bought out a foreign investor. (COLOMBO, March 15, 2018)