President chairs Cabinet Committee on LNG

Thursday, 28 February 2019 00:20 - - {{hitsCtrl.values.hits}}

Discussions lead to no decision, Committee set to meet again

The Cabinet-appointed Committee to examine the setting up of LNG power plants held its first meeting yesterday, chaired by President Maithripala Sirisena.

President Maithripala Sirisena

The meeting, described as “robust” by participants, however ended with no decision. “The meeting was productive, but no decision was made; the Committee is to meet again,” a top source privy to the meeting proceedings told Daily FT.

Power, Energy, and Business Development Minister Ravi Karunanayake, Megapolis and Western Development Minister Patali Champika Ranawaka, Economic Reforms and Public Distribution Minister Dr. Harsha De Silva, Cabinet Secretary Sumith Abeysinghe, Power, Energy and Business Development Ministry Secretary Dr. B.M.S. Batagoda, and National Economic Council Secretary General Prof. Lalith Samarakoon were also present at the meeting.

The Committee was appointed on Tuesday by the Cabinet, following disagreements related to the tender to set up a 300MW LNG power plant in Kerawalapitiya. Following recommendations by the Procurement Appeal Board (PAB), while the Consortium of GCL, Windforce and RenewGen is to be awarded the project to set up the first proposed plant, which was subject to the standard tender process, a second project is to be awarded to Lakdanavi Ltd., sans tender process. The latter move, proposed by Karunanayake, had sparked criticism, prompting the Cabinet to appoint the Committee.

The Cabinet has also sought the advice of the Attorney General about the legality of awarding the second tender to Lakdanavi Ltd.; the AG is yet to respond. Lakdanavi Ltd. has maintained that the move is illegal, and that they were the rightful winners of the bidding process, despite the PAB decision.

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