The latest Cabinet Paper on the Beliatta Electricity Project, which was approved on October 22 and is due to be ratified today, is aimed at handing over the project to Lanka Transformers Limited by-passing tender procedures.

Senior Ceylon Electricity Board sources yesterday told The Island that although Lanka Transformers Ltd (LTL) was introduced as a subsidiary of the CEB, their projects were handled by a private company which was not a subsidiary of either the CEB or LTL.

Another senior spokesman, who was critical of the procedure being adapted said: "The Cabinet has urged immediate action stating that the project is already 21 months late. This is untrue as even the idea was conceived only 21 months ago and time was required for planning, procurement and implementation."

He said the project is needed only in 2010. "Actually the project was delayed by the Ministry by which did not take a positive decision for three months."

The presidential election manifesto ‘Mahinda Chintanaya’ promised to supply electricity to all households and industries under the Ran-Eliweta programme. Under Phase 1 of this project,

the government has allocated four billion rupees for electrification in the Hambantotta District. The rural electrification under this project has already been started and necessary medium and low voltage distribution lines and substations are being constructed.

The key element of this project, the construction of 132/33 kV Grid substation at Beliatta and 132 kV Transmission line from Hakmana to Beliatta has been already delayed by more than three months. The scheduled completion date of this Grid substation is April 2010.

The reason for this delay is not known.

The required land for the construction of the Grid Substation has already been procured and the legal clearance for the proposed line route has been obtained from the relevant authorities.

Since the construction of the distribution lines and rural electrification work is in progress at an accelerated rate, the delay in the construction of the Grid substation will lead to low voltage and system over loadings of electricity network which will affect most of the electricity consumers in the Hambantotta district specially around Beliatta, Tangalle, Weeraketiya and Walasmulla areas.