Ministry to cancel emergency power tender

Thursday, 14 February 2019 02:48 - - {{hitsCtrl.values.hits}}

Rates quoted too high

The Power, Energy and Business Development Ministry is likely to cancel the emergency power purchases tender which closed this week, high level sources confirmed.

The tender, which called for bids to supply 100MW of “supplementary electricity on short term basis”, is likely to be cancelled as the rates given by bidders were too high, the source confirmed. The Ministry called for bids in anticipation of power shortage in the coming months due to drought conditions.

Three bidders had bid for the tender, with the lowest quoting a rate of Rs. 30.80, Daily FT learnt.

The tender also came under fire by the Public Utilities Commission, which wrote to the Chairman of the Cabinet-appointed Standing Procurement Committee, noting that approval from the Ministry had placed the tender notice calling for bidders without prior approval. The letter, seen by Daily FT, also noted that the move was in violation of the Electricity Act, which requires the Ceylon Electricity Board, which placed the advertisement, to obtain approval from PUCSL prior to proceeding with the procurement process.

The contents of the letter were then forwarded to the Cabinet, which subsequently directed the Secretary of Ministry of Power and Energy and Business Development to take note and obtain the approval needed for the tender.