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Sri Lanka union blames Chinese firm for power plant failure

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COLOMBO Jan 24 (Reuters) - A 300-megawatt Chinese-built power plant in Sri Lanka failed for a fourth time since its commissioning in March, in what a trade union on Tuesday said was either sabotage or continuing negligence by the operator.

The failure at the Norocholai coal power plant will force a two-week shutdown that will cost the state-run electricity board at least 168 million rupees ($1.47 million) to meet the lost supply.

"All these breakdowns are happening either due to the negligence or intentionally by the Chinese just to extend their maintenance contract," CEB's Technological Engineers Union Joint Secretary U.R.K Senaratne told Reuters.

China Machinery and Enginering Corporation (CMEC) built the plant, the first phase of which joined the grid in March. It is also constructing a second phase to bring the plant's production capacity up to 900 MW, at a total cost of $1.3 billion funded by China's Exim Bank.

The CMEC's project director, Lnong Ludong, was on leave and could not be reached for comment by Reuters.

Power and Energy Minister Patali Champika Ranawaka said he was investigating.

"I was not informed of any such sabotage. But I have called for reports from two parties including the project manager and am now studying what measures to take to prevent frequent breakdowns," Ranawaka told Reuters. ($1 = 113.9300 Sri Lanka rupees) (Reporting by Ranga Sirilal and Shihar Aneez Editing by Bryson Hull and Ed Lane)

Sri Lanka union blames Chinese firm for power plant failure | Reuters
 
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Jan 24, Colombo: Sri Lanka's Norochcholai coal power plant has failed again today for the third time in a period of two months.

The authorities of the coal power plant are unable to say when the plant will resume operations.The power supplier, Ceylon Electricity Board (CEB) incurs heavy losses purchasing power from private sector at higher rates to meet the demand when Norochcholai coal plant fails.

Power and Energy Minister Patali Champika Ranawaka has said that every non-operational day has cost the CEB Rs. 80 million.

A Technical Engineering Union official of CEB, Senior Engineering Assistant U.R.A. Senarathna alleges that the coal power plant frequently fails due to disruptive activities of the Chinese company that wants a long term maintenance contract of the power plant. He said that around 100 employees sent to China for training to operate the plant have not been properly trained.

The US$ 450 million coal power plant that adds 300 megawatts to the national energy grid, commenced operations in March 2011. The plant has not been in operation for 35 days last year due to the failures.

Sri Lanka : Sri Lanka\'s Norochcholai coal power plant fails again
 
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He said that around 100 employees sent to China for training to operate the plant have not been properly trained.

they need to stay in China for longer period to get trained.
 
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Bad news for Reliance Power shares (they are heavily exposed to chinese power equipment) .... although good news for L&T and BHEL.

Although, if Reliance ADAG eventually goes bankrupt, it will eventually mean bad news for chinese banks... they have some 12 billion USD exposure to ADAG.

Reliance Power will be an interesting stock to watch.
 
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China is just making money of Sri Lanka, first they loan them money, and then Sri Lanka gets poor service in return from China.

Win win for China.

Actually, it depends... whether the loan is to the Sri Lankan Sovereign or the Sri Lankan power company.

The power company can easily go bust ... the SL sovereign would need to pay back the loan out of it's nose.

Anyway, lessons for the future...
 
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Sri Lanka's Norochcholai coal power plant has failed again today for the third time in a period of two months. :woot: :woot: :rofl:

chinaese quality :rofl: :rofl:

- First china tries to fool Sri Lanka by offering aid but in reality its a loan for buying cheap chinese stuff on a very high interest rates.

- Then china presented inflated bills.

- And at last delivered a low quality product :eek:

They have done same with the pakistan where chinese have supplied low quality locomotives that doesn't run :eek: :woot:

Pak conveys concern to China over substandard rail engines

http://zeenews.**********/news/sout...ina-over-substandard-rail-engines_639602.html

http://www.defence.pk/forums/econom...emergency-chinese-suppliers-fail-deliver.html
 
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Actually, it depends... whether the loan is to the Sri Lankan Sovereign or the Sri Lankan power company.

The power company can easily go bust ... the SL sovereign would need to pay back the loan out of it's nose.

Anyway, lessons for the future...

I am sure if its to the company, the SL government cant afford to let the company which provides energy to collapse, China money is pretty safe.
 
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Sri Lanka's Norochcholai coal power plant has failed again today for the third time in a period of two months. :woot: :woot: :rofl:

chinaese quality :rofl: :rofl:

- First china tries to fool Sri Lanka by offering aid but in reality its a loan for buying cheap chinese stuff on a very high interest rates.

- Then china presented inflated bills.

- And at last delivered a low quality product :eek:

They have done same with the pakistan where chinese have supplied low quality locomotives that doesn't run :eek: :woot:

Pak conveys concern to China over substandard rail engines

http://zeenews.**********/news/sout...ina-over-substandard-rail-engines_639602.html

http://www.defence.pk/forums/econom...emergency-chinese-suppliers-fail-deliver.html

Its a common knowledge that Chinese loans comes with huge strings attached, but SL, BD or Pakistan doesn't mind that ..so who are we to complain.
 
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Common it was a Chinese power plant. What could have possibly gone wrong with it? :what: :china:
 
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If people want to learn the hard way then be it...Should have simply given the contract of operating to Chinese as well..
Or, as someone suggested training should have been longer, much longer...
 
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