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GoSL-New Fortress agreement: Engineers frown on modus operandi, gas supply contract

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By Ifham Nizam

The government had done the right thing when it came to attracting investment into the energy sector, but the methodology it adopted was questionable, especially in signing such an important deal so hastily at midnight, senior independent engineers said.

They told The Island that with regard to New Fortress (NF) buying shares in Yugadhanavi it boiled down to a foreign direct investment at a time the country badly needed foreign exchange.

The government has signed a share sales agreement with NF to sell 40% of shares held by GOSL in Yugadhanavi power plant for USD 250 million, which is in line with the government Chief Valuer’s valuation as stated by GOSL.

“After all, the investor has to take his return through dividends from operations over 15 years and convert it to repatriate. Dividend declaration would be decided by the majority of shareholders and depend on availability of cash. When considering Sri Lanka’s current rating (C grade) this single investment of USD 250 million is a substantial contribution in terms of boosting foreign reserves and builds confidence in other investors,” a senior engineer said.

With NFE’s investment in the Floating Storage Regasification Unit (FSRU) terminal, overall foreign exchange inflow would be nearly USD 300 million.

A senior engineer at the Kerawalapitiya Plant said that CEB’s concern should be the gas price which would have a direct impact on its operations.

The senior engineer expressed concern about allowing FSRU terminal project to NF while a tender called by the CEB for the FSRU was being evaluated.

“Sri Lankan government being able to sell 40% for a 10-year-old heavy fuel oil (HFO) fired power plant for USD 250 million was a good deal but the problem is that it was linked to the gas supply, the top engineer said.

As far the West Coast Power Ltd., the owner of Yugadhanavi power plant, GOSL has 50%, EPF has 27% and LECO has 18.2% and Lakdhanavi has 4.8%.

A senior engineers said, ” The value of 250 USD for 40% is a good price on an assets base and future income based. The CEB will pay all future capacity charges in Sri Lankan rupees. There will be no change in capacity or fixed charges because a foreign investor is coming in.  PPA and IA do not prevent change of shareholders. Similar changes in shareholding happens in the AES power plant, which is now owned by Sojitz Japan.

With the sale of shares the GOSL has allowed NF to supply Natural gas to Yugadanavi and the new power plant to be constructed. This could be a concern for the CEB.

Yugadhanavi now operates with Low Sulfur HFO, which is an imported product supplied through CPC; it is more expensive than normal HFO. However, at present, CPC refines and supplies low sulfur HFO.

When Yugadanavi operates on natural gas, the power capacity can be increased by 10% and fuel efficiency will be better. Therefore the overall tariff to the CEB will be lower than operating with HFO.

The new power plant to be built by NFcan run on natural gas or diesel only.

The issue may be how a US company has been selected to buy shares and supply gas. Selling shares is GOSL’s prerogative, which other shareholders or the CEB cannot challenge.



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Cardinal: Presidents, IGPs and AG sabotaged Easter carnage probes before 2024 regime change

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Ven. Omalpe Sobitha Nayaka Thera, Malcolm Cardinal Ranjith and Rev. Dr. Andrzej Józwowicz, Apostolic Nuncio in Sri Lanka, at an event held yesterday at St. Anthony's Church, Kochchikade, Colombo, to mark the seventh anniversary of the Easter Sunday terror attacks. (pic by Nishan S. Priyantha)

… successive governments sat on PCoI report handed over in Feb. 2021

His Eminence Malcolm Cardinal Ranjith yesterday (21) alleged that those who were in power from 2019 to September 2024 sabotaged investigations into the Easter Sunday carnage (2019).

Addressing the Seventh Year Commemoration of the Easter Sunday suicide attacks, at St. Anthony’s Church Kochchikade, Colombo, the Archbishop of Colombo said that unlike the present leaders of the country, almost all the power holders, since the 2019 April attacks, including former Presidents, Heads of the Police and the AG’s department officials, instead of sincerely finding out as to who and what was behind the horrific crime, tried their best to confuse the public, muddle up the investigations and appointing all kinds of committees, with highly suspect investigators, in order to come out with conclusions crafted by them, and tried to sabotage the truth from emerging.

In spite of the change of government, in September 2024, certain officials of the “deep state” were seeking to obstruct the smooth flow of ongoing investigations.

Regardless of the Presidential Commission of Inquiry (PCOI) giving clear directives to the Attorney General and to that department to take clear legal and disciplinary actions against some of the political figures, officials of the security establishment and organisations for criminal neglect of duty, very little has so far been done on this matter by them.

The PCoI handed over its report to President Gotabaya Rajapaksa in February 2021.

The Catholic leader emphasised the need to investigate possible links between the Easter Sunday massacre and attacks, targeting the Muslim community, on the night of 5th May and, once again, on 11th, 12th and 13th May, starting from the Nattandiya-Madampe area, through Kotaramulla to Minuwangoda. The Cardinal said: “This may have a link to the main attacks on 21st April 2019. One must also verify as to whether anyone in the security establishment prevented those responsible from controlling these attacks as and when they began.”

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CIABOC asks Parliament not to transfer witness in case against Deputy Secy General

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The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has directed the Secretary General of Parliament Kushani Rohanadeera to cancel an internal transfer of a senior official.

Sources said that the CIABOC intervened as the female official to be transferred is a key witness in the ongoing investigation into the conduct of suspended Deputy Secretary General of Parliament Chaminda Kularatne. The CIABOC has asked the Secretary General to delay the transfer until the conclusion of its investigation.

CIABOC initiated the investigation following a complaint against Kularatne, who himself complained against Speaker Dr. Jagath Wickremaratne over corruption and irregularities.

The female official’s transfer was to take effect on 20 April.

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UN wants Sri Lanka to deliver concrete results in Easter Sunday bombing probe

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The United Nations has urged Sri Lanka to deliver concrete results after long-running investigations into the 2019 Easter Sunday suicide bombings that killed 279 people, including 45 foreigners.

The UN’s top envoy to the country, Marc-Andre Franche, said survivors and families of victims were still waiting for answers, despite multiple probes and renewed political pledges following the formation of a new government in September 2024.

“Public commitments by the government to pursue justice are important and must be welcomed,” he said, as the nation marked seven years since the bombings on Tuesday.

“But what matters now is results,” he said at a remembrance service in Colombo.

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