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Monday, July 15, 2024

Adani Wind Plant Deal: Sri Lanka to Lose 100x More Than the infamous Bond Scam Over 20 Years

Yesterday, the CEB published the bids received for the 50MW wind power plant in Mannar, which they have called for competitive bids on a 20-year Build, Own, and Operate (BOO) basis.
Bids received (USD cents per 1 kWh) 1. 4.88 – Windforce 2. 4.98 – Vidullanka consortium 3. 5.90 – Lakdhanavi.
Last month, Sri Lanka’s Cabinet approved Energy Minister Kanchana Wijesekera’s proposal to award Adani the contract for a 484 MW wind farm in the same region, bypassing competitive bidding process.
Rate: 8.26 USD per kWh Same region, same duration of 20 years, same payment structure, much larger plant (which allows further reduced unit cost) for Adani approved at a 69% higher rate than the lowest bid here.
Let’s break down the financial impact:
Adani vs Windforce With a plant factor of 40, Production estimate for Adani’s farm: 484 MW × 40% × 24 hours × 365 ×1,000 ≈ 1.69 billion units/year Annual cost for CEB:
• Adani: 1.69 billion units × $0.0826 ≈ $140 million • WindForce: 1.69 billion units × $0.0488 ≈ $83 million Additional cost due to Adani’s deal:
• Annual: $140M – $83M = $57M
• Over 20 years: $57M × 20 = $1.14 billion T
o put this in perspective, the 2015 bond scam, considered Sri Lanka’s largest financial scandal to date, resulted in a loss of $11 million. The potential loss from the Adani deal is over 100 times that amount. One has to ask: Is it too much to expect a fair, competitive bidding process for massive national projects? If Sri Lanka can’t prevent this level of apparent corruption at the highest levels of government, what hope is there for the country?
– Numbers.lk 

@numberslka

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