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| Tuesday, 17 August 2004 |
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Positive response from US, WB to upgrade power and energy sector
Minister of Power and Energy Susil Premajayantha received a positive response from the US Trade and Development Agency (USTDA) and the World Bank (WB) for assistance in diversifying and upgrading the power and energy sector in Sri Lanka. Minister Premajayantha who visited the United States last week had discussions with top officials of the USTDA during his official tour in the US. At a meeting with the Country Manager/Asia of the United States Trade and Development Agency (USTDA), the Minister reviewed the USTDA technical assistance for consultancy services on the development of a 300 MW coal fired power plant within the agreement signed in July 2003 between the US and Sri Lanka for the award of US$560,000 in terms of technical assistance for the project. He told USTDA that Sri Lanka, having maximised its hydropower potential, is now seriously considering developing coal and thermal power plants to meet the country's increasing demand for power. The Minister stressed the need to engage in off-shore oil and gas exploration to increase Sri Lanka's capacity to meet fluctuations in the global oil prices. Country Manager/Asia, pointing out that the power and energy sector development being part of USTDA mission objectives, expressed willingness to consider favourably Sri Lanka's request for expert services in this sector. Minister Premajayantha met WB's Vice President, South Asia Region Praful Patel and outlined Sri Lanka's priorities in the power and energy sector and discussed the potential World Bank assistance to meet these priorities. The Minister expressed the need for diversifying Sri Lanka's energy generation system to meet the consumer and industry needs and, to mitigate the negative impact of global hikes in oil prices. He stressed the need for technical assistance to support offshore oil and gas explorations. Patel told Premajayantha that the WB is willing and flexible in meeting Sri Lanka's needs. At a meeting with Senior Executives of Caterpillar Power Ventures Corporation, the Minister reviewed the progress made on the company's investment in a US$ 60 million joint venture power generation project in Sri Lanka with the Aitken Spence Company. The construction of a 100 MW power plant at Embilipitiya by the Joint Venture Company ACE Power Embilipitiya (Pvt) Ltd., which is already under way, will be commissioned in April 2005 and commercial operations are expected to commence in May 2005. Minister Premajayantha also discussed investment opportunities in the alternative energy area and in coal and thermal power plants in Sri Lanka. Caterpillar Power Ventures Corporation is a member of the Sri Lanka Working Group established at the United States Chamber of Commerce and extends valuable support to promoting Sri Lanka's trade and investment agenda in the US. The Corporation also supported humanitarian de-mining activities in the North by sponsoring one of the specially trained de-mining dogs in the canine de-miming program recently launched in Sri Lanka. Discussing the status of the Kelanitissa (Pvt) Ltd. (AESK) owned by AES Corporation USA, the Minister discussed new opportunities emerging in the alternative and renewable energy sector in Sri Lanka. Caterpillar Power Ventures Corporation and AES Corporation USA apprised Minister Premajayantha that they are fully satisfied with their investments in Sri Lanka and found the investment climate and the capacity of local banks and companies in Sri Lanka attractive to forge future business partnerships. At the meeting with senior officials of the USEA, the Minister discussed ways of establishing a partnership with the USEA to share its experiences in the areas of power transmission and distribution, energy sector regulation, energy efficiency and utility management under its Energy Partnership Program and its affiliation with the South Asia Regional Initiative for Energy Cooperation and Development (SARI/Energy). Minister Premajayantha also outlined the special emphasis given to rural electrification programs under rural sector development envisaged in Sri Lanka's Millennium Challenge Account (MCA) Compact and discussed potential programs under the USEA and USAID. (Courtesy: Sri Lankan Embassy in Washington) |
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