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Chinese bid for second LNG power plant to be disqualified for failure to submit bid bond

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By Ifham Nizam 

The submission of bids for the LNG Second Power Plant Sobedanavi at Kerawalapitiya, has been opened.

The 350 MW power plant to be run on LNG is to be a BOOT – Built Own Operate and Transfer- venture.

More than 15 companies bought bid documents called RFP – Request for Consultant Services Proposal – from various parts of the world, yet only two companies have submitted bids; CNC of China and Lakdanavi from Sri Lanka.

A senior Electrical Engineer told The Island that the Chinese company had not submitted the bid bond. The value of the bid bond was Rs. 600 million or USD 3 million.

“The Chinese company has stated at the bid opening that they submitted a bid without a bid bond as their head office had asked them not to give a bond to the CEB,” a senior official said.

The Chinese government too will not support their company to provide bid bonds to the value of USD three million.

“This could be due to the country’s bad economic situation or not having faith in the system, and, therefore, the Chinese bid has to be rejected,” the official said.

He also stressed that now the Sri Lankan company had to find foreign exchange to build the power plant to help the CEB to meet long term generation plans. The Island learns that the Asian Development Bank was likely to be one of the funding sources.

“This shows there is no trust to invest in the country’s power sector. Usually, IPP – International Power Purchasing – is a preferred business for the energy market,” he said.

While such is the situation, various elements are pushing for investment by New Fortress Energy, USA, which came forward with a backdoor offer to buy 40 percent shares of the Westcoast Power Plant Limited (WCPL) at USD 250 million.

WCPL owns Yugadhanavi HFO –Heavy Fuel Oil- power plant which is 12 years old and will have to hand over to CEB for one USD in 2035.

NFE has sought to supply LNG to WCPL and Sobedanavi as Part of the deal for five years at less than USD10 /MMBtu -Metric Million British Thermal Unit- including FSRU terminal charge. The CEB and the country will save nearly USD one billion over five years by operating above two power plants with LNG, it is claimed by its promoters.

The CEB was planning to have 5000 GWh from LNG based power which is nearly 1/3 of annual energy requirement.

If the 5000 GWh are to be generated from oil HFO and diesel then the country works have an additional cost of nearly Rs. 30 billion annually.



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Courtesy call by the Heads of Mission- Designate on Prime Minister

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The heads of mission designate to Sri Lanka paid a courtesy call on Prime Minister Dr. Harini Amarasuriya on 26th of March at the Prime Minister’s office.

The delegation comprised Dharshana M. Perera, High Commissioner – designate of Sri Lanka to Malaysia, Ms. Dayani Mendis, Ambassador and PRUN – designate of Sri Lanka to Austria, Ms. N.I.D. Paranavitana, Ambassador – designate of Sri Lanka to Ethiopia & African Union, Prof. (Ms.) M.I. Fazeeha Azmi,Ambassador – designate of Sri Lanka to Iran,  Saman Kumara Chandrasiri, Ambassador – designate of Sri Lanka to Israel, and  M. Farook M. Fawzer, Representative – designate of Sri Lanka to Palestine.

The Prime Minister, Dr. Harini Amarasuriya, extended her best wishes to the Heads of Mission–designate and underscored the importance of their forthcoming assignments in advancing Sri Lanka’s national interests emphasizing their collective role in contributing towards the socio-economic upliftment of Sri Lanka.

The Prime Minister further highlighted the importance of projecting a positive and credible image of Sri Lanka internationally, through consistent, professional, and strategic engagement in their respective host countries and multilateral platforms.

She encouraged the Heads of Mission to actively identify and facilitate high-quality investment opportunities, particularly in sectors aligned with Sri Lanka’s development priorities, with a focus on sustainability, innovation, and long-term value addition.

Particular emphasis was placed on the promotion and diversification of Sri Lanka’s exports, including the exploration of new markets and strengthening trade linkages.

The meeting was attended by the Secretary to the Prime Minister, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta and heads of mission-designate.

[Prime Minister’s Media Division]

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SC finds Keheliya, others, guilty of violating FRs of public through corrupt drug procurement deal

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The Supreme Court yesterday held former Health Minister Keheliya Rambukwella and several senior health officials liable for violating the fundamental rights of the public over a controversial drug procurement carried out under the 2022 Indian Credit Line.

Delivering the judgment, a three-judge bench, headed by Chief Justice Preethi Padman Surasena, and comprising Justice Kumudini Wickremasinghe and Justice Janak de Silva, found that the procurement of medical supplies from an unregistered company, in breach of established procedures, had resulted in a serious infringement of public rights.

The Court ruled that the granting of a Waiver of Registration by the authorities was “wrongful, arbitrary and capricious,” and held that the direct procurement carried out on an unsolicited basis was unlawful. The transaction was accordingly declared null and void.

In a significant order, the Court directed Rambukwella to pay Rs. 75 million in compensation to the State from his personal funds.

The then Health Ministry Secretary Janaka Chandragupta and former Chairman of the National Medicines Regulatory Authority (NMRA), Prof. S. D. Jayaratne, were each ordered to pay Rs. 50 million.

The Court further directed NMRA Chief Executive Officer Dr. Wijith Gunasekara and former Director of the Medical Supplies Division Dr. Thusitha Sudarshana to pay Rs. 50 million each as compensation.

The ruling followed the hearing of a fundamental rights petition filed by Transparency International Sri Lanka and two other parties.

The Court also instructed the Commission to Investigate Allegations of Bribery or Corruption to initiate appropriate action under the Anti-Corruption Act against those found responsible.

Senior Counsel Senany Dayaratne, with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema and Maheshika Bandara, appeared for the petitioners.

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Sajith nudges govt. to follow India’s example in giving relief to consumers by slashing taxes on fuel

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Sajith

Opposition and SJB Leader Sajith Premadasa yesterday urged President Anura Kumara Dissanayake to reduce taxes on fuel, just as the Indian government has done.

He said in a post on X that “Modi government has decided to reduce the Special Additional Excise Duty on petrol and completely remove it for diesel in order to cushion the hardship on the Indian consumer. High time for Anura Kumara Dissanayake to keep up to his election promise and follow suit.”

Meanwhile foreign media reported that India has slashed excise duties on petrol and diesel to protect consumers and rein in a potential spike in inflation, while imposing windfall taxes on aviation fuel and diesel exports, amid volatile global oil markets, as a result of the Iran war.

Global oil prices have surged past $100 per barrel after the near closure of the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, since the US and Israel first struck Iran on February 28.

In a government order, released late on Thursday, India’s Finance Ministry reduced the special excise duty on petrol to three Indian rupees ($0.0318) per litre from 13 Indian rupees earlier. It also cut the duty on diesel to zero from INR 10 rupees per litre.

The government did not say how much the duty cuts would cost. The move comes ahead of elections next month in four Indian states and one federal territory, with Indian voters known to be extremely sensitive to higher prices.

“Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies, approximately 24 rupees a litre for petrol and 30 rupees a litre for diesel, at this time of sky high international prices, are reduced,” Indian Oil Minister Hardeep Singh Puri said in a post on X.

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