Oct 08, Colombo: A consumer movement in Sri Lanka says that the proposed Sampur coal power plant in Trincomalee district would cost additional monies to the power authority, Ceylon Electricity Board (CEB).
The National Electricity Consumers Movement (NECM) told media that the agreement on the Sampur Coal Power Project signed between the CEB and India's NTPC would cost the CEB an additional Rs 7.5 billion annually.
Adviser to the NECM Bandula Chandrasekera pointed out that in order to make the project viable for Sri Lanka, certain clauses in the agreement between the CEB and the Indian state-owned National Thermal Power Corporation, need to be amended.
He explained that while the international return on equity (RoE) standard is 12%, the rate in the Sampur coal power plant agreement is 18%, which is overrated.
According to Chandrasekera, the plant has lost its expected levels of productivity, and would therefore stand to lose around Rs. 2.6 billion to Rs. 4.9 billion annually.