Is Sri Lanka's controversial power project taking off?
confusing signals are emanating regarding the construction of a controversial power plant in Sri Lanka's central hills. The government recently said Japan had approved funding for the Upper Kotmale project. Japanese officials say the sanction is on hold. Meanwhile, environmental concerns linked to the project remain unresolved.
On December 12, 2004, the Sunday Observer quoted P Weerahandi, secretary, power and energy ministry, saying that the Japan Bank for International Cooperation (jbic) had agreed to provide us $297 million loan for the 150 megawatt project. But Shinya Ejima, jbic's chief representative in Colombo, told Down To Earth: "We have still not approved the project as the government has not discussed the changes yet." He had earlier said the funding would be in jeopardy if project designs were changed to suit political and environmental considerations.
The Upper Kotmale project has been marred by controversy for the past three to four years (seeDown To Earth, 'Minimum support price', August 15, 2004, p18). Environmentalists believe it will destroy seven of the country's best waterfalls and other natural resources too. The Ceylon Workers Congress (cwc), a plantation union, has been opposing the project on the ground that it will dislocate many people. It did so when the former government wanted to launch it. The ruling United People's Freedom Alliance is also keen on the project but is constrained by the cwc; it needs cwc's support to stay in power.
Sarath Fernando, secretary, Alliance for Protection of Natural Resources and Human Rights, alleges that the jbic has threatened to terminate the loan agreement if the government fails to initiate work on the project by December 2004 without any changes. But Ejima argues: "We are not convinced that the changes to exclude the five tributary intakes from the main dam are necessary. If that happens, the power generation will be reduced by 20 per cent. I am not saying we would pull out but normally the Japanese government doesn't accept changes after a project is approved.
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