Suspension of Uma Oya project:CEB concerned, Irrigation Dept. in the dark

By Maheesha Mudugamuwa

November 12, 2012,

In the wake of the suspension of the Iranian-funded multipurpose Uma Oya project, the Ceylon Electricity Board (CEB) has called a meeting to discuss the situation.

CEB Chairman Prof. Wimaladharma Abeywickrema told The Island yesterday (12) that remedial action was necessary to overcome difficulties caused by the suspension of the project.

The Uma Oya multipurpose reservoir hydro power project has been suspended due to a number of reasons including a dispute between two Iranian companies involved in the project, overdue payments and issues arising from Sri Lanka’s decision to purchase crude oil from countries other than Iran.

President Mahinda Rajapaksa inaugurated the project to build an underground tunnel on August 8, 2012 with the participation of Iranian officials.

Responding to a query, Prof. Abeywickrema said, "The Uma Oya Project is completely handled by the Irrigation and Water Management Ministry. But the Ministry has not officially announced the suspension of the project."

Prof. Abeywickrema said that CEB was greatly concerned because Uma Oya project was one of the major schemes which would help the CEB produce the much-needed hydropower. It is expected to electrify 100 remote villages.

The agreement on the Uma Oya project was finalised in 2008 and the Iranian President Mahmoud Ahmadinejad and President Mahinda Rajapaksa witnessed the signing of six agreements including the Uma Oya scheme.

Under the Uma Oya project two rolling compact concrete dams, an underground hydro power plant with 134 MW capacities and a 23-km underground tunnel will be constructed. The main objective is to divert water from the Uma Oya to the Southern Province.

The construction work of the project was undertaken by the Hardish Engineering Company of Iran. It is expected to be finished within five years.

Meanwhile, Irrigation Department Director General, Badra Kamaladasa said that the Irrigation ministry had not informed her institution about the suspension of the Uma Oya project.

Kamaladasa said, "Our department is responsible for the downstream project and we have appointed engineers for it. They are still working there and we are not aware of any suspension."