Chinese funded power plant in Sri Lanka under fire

SL Time reported that Sri Lanka's main opposition United National Party alleges that a large sum of money has been paid as

commission for the 1st phase of the Norochcholai coal power plant.

UNP parliamentarian Harin Fernando said that out of the USD 1.3 billion estimated cost for the 1st phase of the

Norochcholai coal power plant, USD 300 million had been taken as commission.

While noting that the actual cost of the project is USD 1 billion, the MP explained that the Chinese who had built the

plant are now refusing the government's sell back offer due to the additional amount of USD 300 million paid as commission

monies being added to the project cost.

He said “The government claimed the cost was USD 1.3 billion. However, the Chinese have said otherwise, in their refusal

to accept the ownership of the plant. This means USD 300 million was pocketed as commission by those involved in the

project.”

Meanwhile, addressing a media briefing Friday, the Kalutara district UNP parliamentarian Ajith P. Perera said the

government has borrowed a huge sum with a high interest from the Exim Bank of China to fund the Norochcholai coal power

plant. As a result of obtaining the funds from China, the plant was built with the Chinese technology and labor but the

country did not receive the expected results.

He accused the government of borrowing money from China with high interest and now, being unable to pay back the loans, is

planning to transfer the plant to the Chinese under conditions detrimental to the public to avoid the economic crisis

created by the massive loans.

MP Perera, while noting that the government is about to launch the Phase 2 and 3 of the Norochcholai plant at a cost of

USD 891 million, questioned the government who will assume the responsibility for the project and under what conditions.

He further said that government is planning to do the same with the proposed Sampur power plant in the Eastern Province

and that is why the Indian company NTPC, which had discussions with the government for years to build the plant, has

backed away from the project.

https://www.coalguru.com/other_asia/chinese_funded_power_plant_in_sri_lanka_under_fire/7680