The government is trying to sell its watered down electricity sector reform plans to lending agencies and top up sector funds this month. The government is trying to sell its watered down electricity sector reform plans to lending agencies and top up sector funds this month. “The government will meet with the ADB and JBIC sometime in the middle of this month to discuss future reforms,” said a senior Power & Energy Ministry official to Lanka Business Online.
These talks will decide the fate of the balance funds – that come up to US$ 60 mn – pledged for electricity sector reforms in Sri Lanka.
“The ADB and the JBIC pledged US$120 mn for reforms. So far only about US$ 60 mn was released,” said the official.
Half the funds got stuck in the pipeline, when reforms ran up against a collective agreement with the CEB trade unions.
So at this point, around US$ 30mn each, from the ADB and the JBIC, are in limbo waiting for the relevant parts of the reforms process to begin.
This includes gazetting a reorganisation scheme that will unbundle the CEB and LECO into eight separate companies.
At this point the government w