Saturday, August 31, 2013

Norochcholai Power Project cost of US$ 268 mn. Re-negotiated for US$ 568 mn. – Ravi K

Spare parts worth Rs.2.3 billion imported for Kerawalapitiya Power Plant
*Krrish Towers down to 71 floors from original 91
The Norochcholai Power Plant contract which was finalized at a cost of US$ 268 million during the last stages of President Chandrika Kumaratunga’s rule, had been re-negotiated within a year after she had left office by the Rajapaksa regime for US$ 568 million, an Opposition legislator charged yesterday.



Ravi Karunanayake MP, told the "Sunday Island" that costs had more than doubled despite the deal being re-negotiated with the same Chinese company.

The government, he said, had failed to explain the reasons for the higher price incurred in building the plant.

Karunanayake,also revealed that spare parts worth Rs.2.3 billion had been imported for the Kerawalapitiya Power Plant.

"What was the need for such a huge quantity of spare parts", he queried adding that here too the public had not been provided with an explanation.

The MP pointed out that it was due to unplanned and unnecessary expenditure which included inflated costs of power projects financed by loans taken at high interest rates that the people were being taxed on a regular basis.

All utility bills had skyrocketed with big surcharges being imposed in a bid to obtain more revenue to clear the huge debt burden that had piled up as a result of short sighted policies being implemented, he observed.

Karunanayake alleged that all most every project undertaken by the current regime carried inflated costs.

When there was enough land in the country, land was to be reclaimed from the sea opposite the Galle Face Green in Colombo to build a Port City at an initial cost of Rs.1.4 billion, he noted.

The MP questioned the need for such expenses when the masses were struggling to make ends meet.

Wide publicity had been given to the controversial Krish Towers project and how it would have 91 floors. After all the recent allegations and denials by the parties to the contract, it has been decided to construct only 71 floors, the MP said.

The circus, he observed, continued while the country’s laws were circumvented by the powers that be who are getting fatter by the day while the poor did not know when the next price or tax increase would deal them another deadly blow.

Meanwhile, a select group of government MP’s and ministers were globetrotting at enormous expense to the treasury while no tangible benefit was evident, Karunanayake pointed out.

An example, he noted, was the Monitoring Member of Parliament for External Affairs, Sajin Vaas Gunawardena, who was eternally abroad.

"Is Vaas Gunawardena the de facto Minister or Deputy Minister of External Affairs, that he had to be flying all the time?"

He said that the government was yet to reply his question on how much it had cost Sri Lanka’s missions abroad to host Gunawardena, including his entertainment expenses.

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