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Mannar wind power park: Ministers to review proposal
View(s):A five member ministerial team has now been tasked to study the setting up of a wind power park in Mannar as a free trade zone, following a Sunday Times disclosure that a proposal that could have led to distributing lucrative contracts to political henchmen was afoot.
The idea is for the Board of Investment to grant “strategic enterprise” status to prospective investors in a bid to increase power supply to the national grid. The move follows a recommendation to the Cabinet by Power and Energy Minister Pavithra Wanniarachchi.
Earlier, a Cabinet memorandum by the same minister, a copy of which the Sunday Times obtained and published details in its June 15 issue envisaged the setting up of a wind power park in Mannar to generate 376 megawatts of power but divided the plan into three segments.
Firstly, the Ceylon Electricity Board (CEB) was to set up a subsidiary to generate 100 megawatts of wind power. Secondly, 150 megawatts were to be generated by private investors through an open competitive bidding process among local developers but the third segment was to select local investors on a first-come-first-served basis and not through open competitive bidding. Foreign partnership of up to 49 per cent had also been allowed.
The five member ministerial team will be headed by Economic Development Minister Basil Rajapaksa and include Environment and Renewable Energy Minister Susil Premajayantha, Lands and Land Development Minister Janaka Bandara Tennekoon , Investment Promotion Minister Lakshman Yapa Abeywardena and Ms. Wanniarachchi.
Energy experts were quoted in the Sunday Times lead story of June 15 as saying that Mannar was an ideal location for a wind power project but what was envisaged in the original Cabinet memorandum would have led to corruption, nepotism, favouritism and the country not getting the best deal.
The Mannar area has been recommended for a wind power park since there are regular winds in this north western sector. Already a number of international companies enjoy a variety of tax concessions in this sector for oil exploration.
The ministers decided that the committee should obtain the views of Industry and Commerce Minister Rishad Bathiudeen, who is Co-Chairman of the Mannar District Development Committee.