Annual Report 2010 - Ministry of Finance and Planning

1 | DEVELOPMENT PERSPECTIVESBox 1.5Electricity for All by 2012The electricity has become an essential source of energy fordomestic and industrial activities in the country. Althoughthe power cuts were a common phenomenon before 2005,the well planned projects implemented by the governmenthave enabled the country to bring power cuts to an endas well as to ensure the continuous and reliable powersupply for the next two decades. A large public investmenthas been undertaken in increasing power generation,transmission and distribution facilities.In line with this, a number of power projects are beingimplemented, including the recently commissionedNorochcholai Coal Power Plant and the Upper KotmaleHydro Power Plant which is also to be commissionedin 2011. The power plants in Sampur in Trincomalee andKerawalapitiya are also among the projects in the pipeline. Inaddition, a large number of small-scale hydro power projectshave also been established in the country to increase thegeneration capacity. Parallel to this, the transmission anddistribution network is also being expanded.With these initiatives, government has given the priorityto provide electricity everyone in the country. In fact, onlyabout 60 percent of the Sri Lankans had the electricity 10years ago but it has increased to 87 percent at present.Under the National Electricity Policy, which contains short,medium and long term objectives, the government haslaunched a programme called ‘Vidulamu Sri Lanka’ toprovide electricity to the entire country by 2012.The programme to provide electricity for all by 2012 mainlytargets the provision of electricity to rural areas through anumber of rural electrification projects implemented withfunds received from local and foreign sources. A total ofRs. 35 billion has so far been incurred in relation to thissince 2005, which includes the projects that are beingimplemented in the Southern Province, Kegalle, Kandy,North Western province, Uthuru Wasanthaya electrificationprogramme, Vidulamu Sri Lanka Central Project, VidulamuSri Lanka Eastern Province project and Uva Udanaya project.In addition the Colombo City project and Street Lightingproject are also being implemented while many otherprojects are also in progress to provide electricity coveringthe entire country.Steps have been taken to provide electricity to theunderprivileged people through ”Grama Shakthi”programme as well. Two factors that have been identifiedfor not obtaining electricity for houses i.e. economicunsoundness and the long distance to get the connections,are being addressed under this programme. A reliefscheme is in place by providing loans to assist those whocannot afford the initial cost of an electricity connection.The households in the distant rural areas that cannot beconnected economically to the national grid are beingprovided electricity through alternative power generationsources such as solar energy, small hydro power, wind millsand bio fuel etc.Ongoing Rural Electrification Projects1 Rural Electrification Project Phase -042 Power Sector Development Project-Part A-RuralElectrification Project Phase 063 Lighting Sri Lanka Project in Southern Province(Galle, Mathara and Hambantota Districts)4 Rural Electrification Project Phase -105 Lighting Sri Lanka Project in Kegalle District6 Lighting Sri Lanka Project in Eastern Province(Trincomalee and Batticaloa Districts) under NeganehiraNavodaya programme7 Ippalogama Electricity Supply Scheme Project8 Lighting Sri Lanka Project in Central Province9 Lighting Sri Lanka project in North Central Province( Polonnnaruwa & Anuradhapura Districts(Rural Electrification Phase 04-Extension)10 Uva Udanaya Programme in Badulla and MoneragalaDistricts11 Lighting Sri Lanka Project in Rathnapura District12 Rural Electrification Project Phase -0813 Lighting Sri Lanka Project in Western Province(Kaluthara, Gampaha and Colombo Districts)14 Lighting Sri Lanka Project in Northern Provinceunder Uthuru Wasanthaya Programme15 Lighting Sri Lanka Projects conduct in OtherDistricts16 Accelerated Rural Electrification Project17 Lighting Sri Lanka Project in North Western Province(Wayamba)50