• Doubts over safety, long-term reliability; 150 defects identified
• CEB official dismisses claims; project completion certificate yet to be issued

The Broadlands Hydropower Project (BHPP), valued at nearly $ 82 million, was officially commissioned in 2022 after years of construction. However, the project has been plagued by serious technical faults, which have delayed its full handover and raised doubts about its safety and long-term reliability.

The Sunday Morning reliably learns that more than 150 defects have been identified, including major cracks in the main turbine runners. These issues have prevented the formal handover of the plant to the Ceylon Electricity Board (CEB). 

Technical defects

According to the CEB, the total project cost is $ 82 million, with 85% funded by the Industrial and Commercial Bank of China (ICBC) and the balance from a local bank. Loan agreements were finalised in 2013 and construction commenced in August 2013. The project was initially scheduled for completion by January 2021.

It is reliably learnt that despite the formal commissioning, the plant has yet to be officially handed over to the CEB because these defects remain unresolved and the contractor has not received the certification of completion.

It is also learnt that the handover process had been stalled for several months without any resolution. The previous CEB administration, under the former Government, had withheld a final payment of approximately $ 10 million to China National Electric Engineering Company (CNEEC), citing the project’s incomplete status and the severity of its technical flaws. 

Adding to the controversy, it is now alleged that the current CEB administration is planning to release the withheld payments despite the unresolved issues, raising concerns over governance, financial accountability, and the future management of the BHPP.

The project

The Broadlands Hydropower Project is a run-of-the-river type project built on the Kelani River. Its primary objective is to harness the hydro potential downstream of the existing Polpitiya Power Station. The plant has an installed capacity of 35 MW, with the main sites located about 90 km northeast of Colombo, near Kitulgala. 

Major components include the main dam, diversion dam, main tunnel, diversion tunnel, power station (with two 17.5 MW turbine generator units), a switchyard, and transmission lines. The plant is expected to generate 126 GWh of electrical energy annually. 

However, the CEB has agreed to maintain a firm water release to safeguard the whitewater rafting tourism industry in Kitulgala, which will reduce annual energy generation. A mini hydropower plant has been set up to minimise this generation loss.

Cabinet approval for project implementation on a design-build basis was granted in 2006, with financing secured through the selected contractor. Following bid evaluation, CNEEC was chosen as the main contractor, with a contract signed at the end of 2010.

Notably, the Broadlands project is the first large-scale hydropower plant in Sri Lanka to obtain Clean Development Mechanism (CDM) registration.

Repair progress

Against such a backdrop, when contacted by The Sunday Morning, a senior CEB official closely involved with the project, who wished to remain anonymous, clarified recent public concerns, dismissing claims that the project had been delayed by a full decade. 

The official confirmed that the plant had been officially commissioned on 15 February 2022 and had since been supplying electricity to the national grid. Since commissioning, the plant has generated over 400 million units of electricity, delivering approximately 20 million units so far.

Regarding reports of 150 defects, the official explained that identifying numerous minor defects during a project handover was routine in large infrastructure projects. 

Typically, hundreds or even thousands of minor issues are noted and rectified during a two-year defect liability period, during which the contractor remains responsible for repairs. Major defects that impair operational safety or reliability are not accepted, and the official insisted that the plant was currently functioning at full capacity without critical issues.

Among the identified defects, common problems such as cracks and corrosion have been documented, with the most significant issue related to the turbine track. Despite this, the plant remains operational. 

The official noted that similar challenges had been encountered in other projects, citing the Victoria Hydropower Plant as a precedent. The contractor is actively working with the manufacturer to address these defects. After an initial unsuccessful repair, a second repair using modifications and a spare turbine wheel has reportedly shown progress.

The official added that the CEB had formally accepted the project in 2022, contingent on the defect liability period. Payment delays have occurred primarily due to Sri Lanka’s financial crisis, with key funding from the ICBC and the local bank temporarily suspended. Consequently, the CEB still owes approximately $ 10 million to the contractor.

The official stressed that the project completion certificate had not been issued yet, pending the resolution of all outstanding defects. Retention money continues to be withheld, as standard practice, until the contractor completes the necessary repairs. The final retention amount will be determined collaboratively by project consultants, the contractor, and project staff, based on the turbine’s final condition.

On delayed payments, he acknowledged that contractors had the contractual right to claim interest if payments were overdue, particularly given the disruptions caused by the Covid-19 pandemic and the country’s economic crisis. Payment claims are typically certified monthly and expected within 56 days, with any interest claims reviewed by consultants under project management protocols.

Sources close to the matter told The Sunday Morning that there had been numerous attempts during the previous administration to accept the project despite the existing defects and proceed with payments. However, these efforts were averted, as it was deemed unacceptable for the CEB to formally accept a project of such magnitude with unresolved major defects.

They further pointed out that if the contractor assured that the defects would be rectified, a sufficient period of observation must follow to properly assess the performance of the repaired components, particularly given the scale of the issues. Until such time, they insisted, no pending payments should be released under any circumstances, as public funds were at stake.

Unjustifiable technical faults

Moreover, sources stressed that it was highly unacceptable for a power plant of this nature and scale to report defects of such severity. 

While it is normal for minor defects to surface during the standard two-year defect liability period after commissioning – with the contractor responsible for addressing them – the nature and extent of the issues identified at Broadlands cannot be treated as routine. 

The fact that both main turbine units have reportedly developed defects is particularly serious and cannot be dismissed as part of the normal commissioning process.

Meanwhile, when contacted by The Sunday Morning, an official from the Laxapana Hydro Power Station (which oversees the Broadlands plant), who also wished to be anonymous, stated that approximately 60 of the reported 150 defects had already been rectified by the contractor. The remaining issues are under negotiation and are expected to be addressed in due course.

When asked whether the CEB would withhold pending payments until all defects were fully resolved, the official responded that while discussions about payment settlements had taken place, no final decision had been made yet.

The contractors had requested payment settlement before proceeding with the installation of the rectified turbines. 

Unanswered questions

Further, when The Sunday Morning contacted BHPP Project Director Gemunu Ranasinghe, he directed inquiries to CEB Spokesperson Dhammike Wimalaratne. Accordingly, a list of detailed questions was forwarded to the latter for clarification, but no response was received from either Ranasinghe or Wimalaratne by the time of publication.

The questions sought answers on several key matters, including the reasons behind the prolonged commissioning and handover delays, the exact number and nature of technical defects identified, details regarding the cracks in the turbine runners, actions taken to address those defects, the status of any independent technical audits, the imposition of liquidated damages or delay penalties, and whether any contractual obligations were breached by the contractor.  

When contacted, CEB Chairman Prof. Udayanga Hemapala stated that he was not aware of the payment and defect details related to the Broadlands project, but assured that he would inquire into the matter and inform the newspaper accordingly.

Attempts to contact CEB Acting General Manager W. Edussuriya were unsuccessful.