The Uma Oya multipurpose development project is expected to be connected to the National Grid by June 2023, Minister of Power and Energy Kanchana Wijesekera said on Tuesday (13).
The Uma Oya Hydropower Complex is an irrigation and hydroelectric complex currently under construction in the Badulla District of Sri Lanka.
In a Twitter message, Minister Wijesekera said that a meeting was held on the Uma Oya project which will add 120MW of Hydropower to the National Grid.
“Officials of Farab Energy and Water projects of Iran and Farab International FZE, the construction and engineering company, have assured that the construction will be completed by end of April 2023,” he said.
The minister added that they have also assured that the Uma Oya project will be connected to the national grid by June 2023.
The agreement on the Uma Oya Project was signed in April 2008 between the Irrigation Ministry and the Farab Energy and water projects of Iran and Farab International FZE collectively with a 5-year contract period plus one year maintenance period.
The completion of the Uma Oya Multipurpose Development Project was delayed, due un availability of US$ 12mn required to complete the remaining five per cent of the scheme, a senior official said.
Funds were requested through the Power and Energy Ministry from the Treasury but there has been no response, said senior project officer . This will delay the possibility of adding a further 120 MW to the national grid.
The money was needed to pay for expertise, essential equipment and material for final testing. An additional Rs 1.5 billion was required for salaries of local employees and related matters. The project was due to be completed by May 25 this year.
But the financial matter is now settled and the work is progressing rapidly, he added.
An additional 120MW would ease the burden on the Ceylon Electricity Board to find fuel for thermal power plants, he said.
The Rs 1.5bn were for subcontractor payments. Farab Co of Iran was the principal contractor. If funding was released, the project could close by December, after which the plant could be commissioned.
“A cabinet memorandum on this has already been submitted, and we are hopeful that it would draw the attention of the government,” he said.
The project was to be commissioned in 2015 but delayed by a leak. The original agreement was signed in 2008, estimated to cost US$ 529mn — US$ 450mn from the Export Development Bank of Iran and the rest from Sri Lanka.
Due to sanctions imposed by the US on Iran, however, funding was affected and the Treasury had to take over a majority of the financing.
The project aims to provide drinking water to Moneragala, Badulla, Hambantota and Wellawaya; and irrigation to Wellawaya, Thanamalwila and Lunugamvehera in addition to generating power.
