Bidder cries foul over LNG tender for second Kerawalapitiya plant

• Project to be presented to Cabinet this week

The Power and Renewable Energy Ministry is set to award a tender to build a 300MW LNG power plant to a Chinese company at a higher price than the lowest bidder, sources said yesterday. 

A Cabinet paper seeking approval to award the project to Build-Own-Operate-Transfer (BOOT) to the Chinese company GCL China, which bid for the project as a Consortium of GCL, Windforce and Rewgen, is set to be presented to the presented to Cabinet this week, ignoring the lowest bidder for the project Lakdanavi Ltd., a subsidiary of CEB.

Interested parties allege the procurement process was flawed as the Appeals Board has overruled the recommendation given by both Technical Evaluation Committee (TEC) and the Standing Cabinet Appointed Procurement Committee (SCAPC) to award the tender to the Chinese company based on a confidential letter sent to the Appeals Board by Power and Renewable Energy Ministry Secretary Dr. B. M. S. Batagoda.

“The concerns that were raised by the appellant in the Appeals Board were already addressed by the TEC. It has been manipulated from the Appeals Board,” a concerned party who declined to be identified told Daily FT.

According to information available, Lakdanavi Ltd. quoted the lowest unit price, 14.98kWh, while CGL China quoted 15.97kWh.

When contacted Dr. Batagoda declined to comment on the matter, stating that he was not at liberty to discuss any details as it was still a confidential matter set to be presented to the Cabinet.