In 2011 Sri Lanka has imported 362,682 tonnes of coal up to October after the coal plant started operations in July minister Ranawaka had told parliament, according to a transcript of parliamentary proceedings.
He was responding to questions of legislator Dayasiri Jayasekera who questioned the the award of the coal supply contract to a second trading firm after cancelling the deal with the first chosen firm.
Coal procurements are made by Lanka Coal (Pvt) Ltd, one of many state firms started since the early 2000 under Sri Lanka's company law dealing with private firms, without an Act of parliament.
Minister Ranawaka told parliament that the tender to supply coal was first awarded to Holcim Trading (Pvt) Ltd, but following an appeal the cabinet of ministers had awarded it to Nobel Resources (Pvt) Ltd.
Holcim had bid 58.763 million US dollars and Nobel Resources 58.736 million US dollars to supply 325,839 tonnes.
The firm had supplied 362,682 tonnes in the period.Jayasekera then said Holcim's bid was higher as the firm was to deliver coal right up to a jetty including barge operations while the power firm had to bear the cost of the final section in according to the terms of the second bid.
Minister Ranawaka replied that Lanka Coal had already bought a barge and its operation was given to Ceylon Shipping Corporation a state-run firm, which was known.
But in subsequent tenders for coal the cost of barge operations would be included, he had told parliament.
Also please read this -http://www.reuters.com/article/2012/09/11/australia-queensland-budget-idUSL3E8KB21F20120911 The Asian Market price of Coal was estimated at $100/ton by many Energy specialists who promoted Coal Power. The shipping costs were estimated at $20/ton initially.
With these prices they claimed the fuel cost for Generation will be well below Rs7/kWh. Now this works to a figure of Rs12.60 as fuel costs alone. If the transmission losses and the costs of power consumed at the plant and the auxiliaries are all included O & M charges Interest on the commercial loan for the plant it will quickly far exceed Rs14/kWh.
The average selling price of Electricity by CEB in 2011 is said to be just Rs13.21. I will leave it you all to decide how cheap is this dirty coal is to the country with it breaking down many a time and taking much longer time to come back which also results in massive power cuts which is very costly to the country’s Economy.
There is much additional costs are incurred in operating the costly Private Power plants. No wonder CEB is making massive losses!!! Be ready for a massive tariff rise soon.