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Technical
assistance duplicated CPC Chairman and Managing Director Jaliya Medagama has already written to the Power and Energy Ministry Secretary expressing the views of the CPC management on the proposed technical assistance programme. He has pointed out that another technical assistance programme could also further delay, at least up to the end of 2006, the bidding for the project. The technical assistance programme for the promotion of private sector involvement in oil and gas exploration in Sri Lanka, funded by the ADB, was completed in April 2004 with promotional meetings in Houston and London. When the original programme was in progress it had been decided to announce the bidding round in October 2001, but it had been postponed to 2002 and then to 2003 due to the delay in enacting the Petroleum Resources Act and the finalisation of operations regulations and marine pollution prevention regulations. The technical assistance programme was completed in 2004 and during the promotional meetings held the assurance was given that the bidding round would begin before the end of 2004. Among the other objections raised by the CPC management was that the proposed technical assistance programme would cost US $ 1125 million of which almost US $ 900,000 proposed to be funded by the ADB goes to the consultants for duplicating the work already carried out by the consultants of the previous technical assistance programme. This excludes US$ 50,000 allocated for equipment. It has also pointed out that the government has to provide US $ 225,000 out of which US $ 75,000 has to be spent on office accommodation and transport for consultants. It has said the delay will have a negative effect on efforts to attract companies to invest in the oil industry. The CPC management has pointed out that many of the preparations required could be handled by the existing CPC staff who have the experience and capability. It has said that the CPC exploration staff interacted with the consultants of the previous technical assistance project by providing counterpart services and has gained state-of the-art knowledge and information about the latest developments in oil exploration. The CPC also claims experience in working with international oil majors without any disputes when it acquired over 15,000 km of seismic and drilled seven wells onshore and offshore during the period from 1974 to 1983. Meanwhile the CPC management is also opposing the appointment of a Director General of Petroleum Resources who has been appointed under the Petroleum Resources Act of 2003, saying it is questionable to have a separate institution for this purpose. |
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