SC notices Power Minister and several others over FR petition alleging govt. set to incur loss exceeding Rs 3bn due to irregular tender

By A.J.A Abeynayake

The Supreme Court has issued notices to Minister of Power and Energy Kumara Jayakody and several other respondents in connection with a fundamental rights petition alleging that the government is set to incur a loss exceeding Rs. 3 billion due to irregularities in the awarding of a solar power plant tender in Siyambalanduwa, Athimale.

The petitioner claims that the Ceylon Electricity Board (CEB) had called for tenders to construct a 100-megawatt solar power plant, but the contract was awarded to a higher bidder, disregarding the lowest bid, resulting in a significant financial loss to the state. The Supreme Court issued the order on Thursday (20) and directed that notices be sent via courier service by 24 February, at the expense of the petitioner. The decision was delivered by a bench comprising Justices S. Thurairaja and Sampath B. Abeykoon.

According to the petition, a company that offered to supply electricity at USD 0.08 per kilowatt-hour was overlooked in favour of a bidder offering USD 0.122 per kilowatt-hour. The petitioner, Milinda Prasanna Madugalla, stated that he learned of the decision through media reports on 21 January 2025. The petition further alleges that the company awarded the contract later agreed to provide electricity at USD 0.08 per kilowatt-hour, but the government had also agreed to cover additional transmission facility costs over a 10-year period, significantly increasing expenditure.

Although the electricity supply cost was eventually reduced, the substantial increase in transmission charges has resulted in an estimated loss of Rs. 3.3 billion to the government. The petitioner argued that this financial burden would ultimately be borne by the public, making the respondents’ actions unlawful and a violation of fundamental rights.

During the hearing, Senior Counsel Suren Fernando, representing the petitioner, urged the court to treat the matter as urgent and allocate an early date for further proceedings. He informed the court that notices had already been issued to all respondents and relevant parties, along with supporting documents.

However, only a Deputy Solicitor General, representing the Attorney General, listed as the 10th respondent, was present in court. The remaining nine respondents or their legal representatives failed to appear.

The Supreme Court has issued notices to Minister Kumara Jayakody, the Ceylon Electricity Board, Rividenavi (Pvt) Ltd, Lakdanavi Ltd, WinSports Ltd, Blue Circle (Pvt) Ltd, Athimale Plantations (Pvt) Ltd, Secretary to the Ministry of Power and Energy Prof. K.T.M. Udayanga Hemapala, and Cabinet Secretary W.M.D.L. Fernando.