No. THE FOLLOW-UP STUDY ON THE REHABILITATION OF HYDROPOWER STATIONS IN THE KELANI RIVER BASIN FOR HYDROPOWER OPTIMIZATION IN SRI LANKA FINAL REPORT Vol. I MAIN REPORT JULY 2005 JAPAN INTERNATIONAL COOPERATION AGENCY ECONOMIC DEVELOPMENT DEPARTMENT ED JR 05 - 053 PREFACE In response to a request from Government of the Democratic Socialist Republic of Sri Lanka, the Government of Japan decided to conduct the Follow-up Study on the Rehabilitation of Hydropower Stations on the Kelani River Basin for the Study on Hydropower Optimization in Sri Lanka and entrusted the study to the Japan International Cooperation Agency (JICA). JICA sent a study team led by Mr. Tsuyoshi Nakahata and organized by Electric Power Development Co., Ltd. to Sri Lanka five times from July 2004 to May 2005. The study team held discussions with the officials concerned of the Government of Sri Lanka, and conducted field studies in Sri Lanka. After its return to Japan, the team conducted further studies and compiled the results in this report. I hope this report will contribute to the promotion of rehabilitation of hydropower stations in the Kelani River basin and to the enhancement of friendly relations between our two countries. I wish to express my sincere appreciation to the persons concerned for their close cooperation throughout the study. July 2005 Tadashi Izawa Vice-President Japan International Cooperation Agency July, 2005 Mr. Tadashi Izawa Vice-President Japan International Cooperation Agency Tokyo, Japan Dear Mr. IZAWA, Letter of Transmittal We are pleased to submit our report on the Follow-up Study on the Rehabilitation of Hydropower Stations in the Kelani River Basin for the Study on Hydropower Optimization in Sri Lanka. This study was conducted for the purposes of carrying out inspections of troubles in the five hydropower stations in the Kelani River basin, of making the rehabilitation plan such as repair and replace with a feasibility study level for them and of giving suggestions of the maintenance manuals for hydropower in Sri Lanka. During the study period, we made our best effort to establish the optimum plans from the technical, economic and environmental points of view. We wish to take this opportunity to express our sincere gratitude to your Agency, the Ministry of Foreign Affairs, and the Ministry of Economy, Trade and Industry. We also wish to express our deep gratitude to the Ceylon Electricity Board, the Embassy of Japan in Sri Lanka, the JICA Sri Lanka Office, and other agencies concerned in Sri Lanka for the close cooperation and assistance extended to us during our study period. Very truly yours, Tsuyoshi Nakahata Team Leader The study team of the Follow-up Study on the Rehabilitation of the Kelani River Basin for the Study of Hydropower Optimization in Sri Lanka Laxapana Fall Castlereagh Dam Laxapana Hydropower Station (Old and New Laxapana Hydropower Station) Wimalasurendra Hydropower Station Turbines and Generators in Old Laxapana Hydropower Station Efficiency test in New Laxapana Hydropower station Intake Guard Valve House of Canyon Hydropower Station Water Leakage from Turbine in Polpitiya Hydropower Station The Follow-up Study on the Rehabilitation of Hydropower Stations in the Kelani River Basin The Study of Hydropower Optimization in Sri Lanka CONTENTS CONCLUSION AND RECOMMENDATION......................................................................... CR-1 Conclusion ....................................................................................................................... CR-1 Recommendation ............................................................................................................. CR-4 1. INTRODUCTION ...............................................................................................................1-1 1.1 Background of the Study ..........................................................................................1-1 1.1.1 Social and Economic Background .............................................................1-1 1.1.2 Necessity of Rehabilitation of Hydropower Stations in the Kelani River Basin and Request for Technical Assistance.........................1-1 1.2 Purposes of the Study ...............................................................................................1-2 1.3 Contents of Each Study Stage...................................................................................1-2 1.4 Persons involved in the Study (Positions as of the time of the Study) .....................1-4 2. GENERAL FEATURES OF SRI LANKA..........................................................................2-1 2.1 Topography...............................................................................................................2-1 2.2 Climate .....................................................................................................................2-2 2.3 Government ..............................................................................................................2-2 3. SOCIO-ECONOMY............................................................................................................3-1 3.1 Population.................................................................................................................3-1 3.1.1 Census Population......................................................................................3-1 3.1.2 Labor Force................................................................................................3-1 3.1.3 Ethnic Group..............................................................................................3-1 3.2 Macro Economic Features........................................................................................3-1 3.2.1 National Accounts......................................................................................3-1 3.2.2 Economic Sector Profile ............................................................................3-2 3.2.3 External Trade and Balance of Payment ....................................................3-2 3.2.4 Government Finance..................................................................................3-3 3.2.5 External Debt and Outstanding ..................................................................3-3 3.2.6 Price Indices and Exchange Rates..............................................................3-4 3.3 Projection of Socio-Economic Structures.................................................................3-4 3.3.1 Population and GDP Projection .................................................................3-4 4. PRESENT SITUATION OF POWER SECTOR IN SRI LANKA......................................4-1 4.1 Energy Situation .......................................................................................................4-1 4.2 History and Formation of Power Sector...................................................................4-1 4.3 Power Demand and Supply Balance ........................................................................4-5 4.4 Electricity Generation...............................................................................................4-7 4.5 Electricity Tariff .......................................................................................................4-8 4.6 Existing Power Plants.............................................................................................4-11 4.7 Introduction of Independent Power Producers (IPPs) ............................................4-12 4.8 Present Status of Transmission and Distribution Lines ..........................................4-13 Final Report i The Follow-up Study on the Rehabilitation of Hydropower Stations in the Kelani River Basin The Study of Hydropower Optimization in Sri Lanka 4.9 Forecast of Power Demand and Supply .................................................................4-13 4.10 Power Development Plan .......................................................................................4-14 4.11 History and Difficulties of Power Development Plan ............................................4-18 4.12 Transmission and Distribution Lines Expansion Plan............................................4-19 4.13 Present Situation of Hydropower Stations in Kelani River Basin..........................4-20 5. CIVIL STRUCTURES........................................................................................................5-1 5.1 Present Status and Rehabilitation Plan for Wimalasurendra Hydropower Plant ......5-3 5.1.1 Castlereagh Reservoir................................................................................5-3 5.1.2 Castlereagh Dam........................................................................................5-3 5.1.3 Intake..........................................................................................................5-5 5.1.4 Headrace Tunnel ........................................................................................5-5 5.1.5 Surge Tank..................................................................................................5-5 5.1.6 Penstock .....................................................................................................5-5 5.1.7 Powerhouse ................................................................................................5-5 5.1.8 Tailrace.......................................................................................................5-5 5.2 Present Status of and Rehabilitation Plan for Old Laxapana Hydropower Plant .....5-7 5.2.1 Norton