Bandula cries foul over LNG plant to Chinese company

Monday, 18 February 2019 02:14 - - {{hitsCtrl.values.hits}}

MP Bandula Gunawardena – Pic by Sameera Wijesinghe

Says will write to President to have Cabinet paper suspended

By Nuwan Senarathna

United People’s Freedom Alliance (UPFA) lawmaker Bandula Gunawardena yesterday called on President Maithripala Sirisena to suspend the Cabinet paper that awarded the contract to build the Kerawalapitiya 300MW LNG plant to a Chinese company.

“The decision to award this contract to a Chinese company has raised concern over the transparency of the tender procedure the Government followed,” Gunawardena told reporters at the Opposition Leader’s office.

Gunawardena charged the decision to deny the tender to Lakdhanavi, a local company, which made a lower bid for the project by the Procurement Appeals Board (PAB) and awarding it to a Chinese company has led to controversy. He said such a move might affect the entire energy sector and discourage the local business community as well.

“According to engineers attached to Ceylon Electricity Board (CEB), the country will lose more than Rs. 90 billion,” he added.

Gunawardena said that he would write a letter to President Maithripala Sirisena on the matter with full details of the PAB’s actions and the effects of the Cabinet decision to award the contract to a Chinese company. However, Gunawardena did not mention what information he intends to send with his letter to the President.

He said that he would also call on the President to take immediate steps to prevent corruption related to tenders that could damage the reputation of the country.

However, the Government gave approval on 12 February to award the tender to set up two 300MW LNG plants in Kerawalapitiya. PAB approved the contract to build the Kerawalapitiya 300MW LNG plant to GCL China Windforce and RenewGen while the second contract will be awarded to Lakdhanavi Ltd to set up a new 300MW LNG plant.

The Kerawalapitiya LNG plant would be the first plant to be constructed after the Lakvijaya Coal Plant in Norochcholai.

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