Confusion on fourth Norochcholai coal power plant

The statement appearing in your issue of 31st July, where Chairman CEB, Vijitha Herath, says ‘They have not awarded the construction to anyone as the technical and environmental impact study was ongoing’ is rather confusing, when the same news item says ‘However, the Cabinet had decided to award the contract to the China Machinery Engineering Corporation [CMEC] due to the contribution from 3×300 plants’.

There was an earlier news item, where Minister for Power and Energy Mahinda Ameraweera had said ‘The fourth Coal Power plant at Norochcholai would not be built without addressing the concerns of all stakeholders’. This statement of the Minister, gives the impression that a contractor has not yet been selected, perhaps withdrawing the earlier Cabinet paper where it was proposed to award the contract to CMEC and also as a Joint Venture.

The statement of Chairman CEB that the proposal to award the tender to CMEC is due to the contribution from the 3×300 plants could be contested. Would not any other contractor who had constructed the 3×300 plants have made the same contribution?

It should also be stressed that President Gotabhaya Rajapaksa, had said in no uncertain terms at the last Presidential Elections, and also after assuming office as President, that he will not approve any project without a feasibility and viability study and strictly follow tender procedure.

If the pledge of the President is to be kept, CEB should by now call for worldwide tenders, as this is a loan from China, and select the best and the lowest offer. If this is done, it could be presumed, China may offer the lowest with attractive terms as China seems to be keen in having a hold in this vital sector.

G.A.D.SIRIMAL

Boralesgamuwa