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Press Release

JICA’S ASSITANCE FOR A MASTER PLAN STUDY ON THE DEVELOPMENT OF POWER GENERATION AND TRANSMISSION SYSTEM IN SRI LANKA

September 2, 2004

The Government of Japan through the Japan International Cooperation Agency (JICA) has undertaken to work with the Ceylon Electricity Board (CEB) in preparation of the Master Plan Study on Development of the Power Generation and Transmission System in Sri Lanka. Preparation of a Scope of Work for the above Master Plan Study was carried out by a JICA Study Team and CEB officials during the period from 25th July to 7th August 2004. JICA and the CEB have agreed on the Scope of Work for the Master Plan Study on 02nd September 2004.

The objective of the study is to prepare a comprehensive master plan of 20 years for generation and transmission system expansion for Sri Lanka. The study will cover the whole country including North and East Province.

The CEB’s power supply has had difficulty in meeting the demand, specially, during low hydro inflow periods. In the mean time the demand for electricity is further increasing and in order to meet the demand the CEB has estimated that it would require extensive development of thermal power plants and transmission line net-works. Moreover, at the end of 2003, 32% of the households in Sri Lanka mainly in rural areas were without the electricity supply.

The power sector in Sri Lanka is in a transition. In 1997, the Government of Sri Lanka has decided that the power sector would be reorganized for creation of a competitive environment in order to improve the power sector’s operating efficiencies, financial viability and service quality. Two acts of parliament with regard to power sector reform were enacted in 2002. However it is revealed that there will be several issues that need to be solved in implementation of restructuring. The issues include debt allocation, environment for promoting private investment, improvement of management efficiency, rural electrification, quality of power supply, electric power loss and environment management.

The Ceylon Electricity Board through the Government of Sri Lanka requested the cooperation of the Japanese Government for the above Master Plan Study in 2003. In response, the Government of Japan dispatched JICA Project Formulation Team in February 2004 to help the CEB to prepare the Master Plan Study. The study will include a comprehensive and deep analysis of above-mentioned issues and a set of recommendations in policies and projects for the development of the power generation and transmission system. Specially, the Master Plan will consider the present problem of power deficiency, frequency control, voltage drop, transmission losses and environment management. The Master Plan will also submit financial plans and investment plans to cope with the present financial problem. Basically, the Master Plan will be conducted to address long-term planning issues in the power sector. As a major benefit of the study, JICA and the CEB expect to promote economically viable, environmentally sound and socially desirable projects with a view of reduction of power shortage in Sri Lanka.

The Government of Japan has provided assistance to Sri Lanka on numerous occasions for the power generation projects. Such assistance included Kukule Ganga Hydro Power Project, Samanalawewa Hydro Electric Power Project, Kelanitisa Combined Cycle Power Project, Upper Kotmale Hydro Power Project, Transmission and Substation Development Project, and Medium Voltage Distribution Network Improvement Project. In addition, the Government of Japan implemented some projects through JICA which include Master Plan Study of the Power Transmission System, Feasibility Study on Combined Cycle Power Development Project, Hydro Power Optimization and the follow-up study on the Rehabilitation of Hydropower Stations in the Kelaniya River Basin. (END)

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