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CEBEU protest against underhand move to go ahead with unsolicited proposal from US Energy Firm

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By Ifham Nizam

The Ceylon Electricity Board Engineers yesterday strongly opposed what they called a government decision to contract US Energy Firm New Fortress Energy to supply LNG and put in place infrastructure.

CEBEU President Saumya Kumarawadu told The Island yesterday they would not support the move, claiming it would lead to financial frauds.

“This deal will lead to losses running to billions of rupees to the country and finally the US firm will acquire rights to supply LNG to all the existing and future power plants, and this is of concern to us,” he said.

The CEBEU President said the CEB had already initiated a transparent competitive bidding process, which was ongoing following the completion of a comprehensive feasibility study, to procure LNG infrastructure to supply LNG for all the existing and future power plants in the country and it was in the final stage.

“I think that to sign an agreement in the middle of a tender process is extremely upsetting,” Kumarawadu added.

Engineers said an ad hoc ‘Technical Committee’ had been appointed by the Ministry of Finance to negotiate terms of the existing Power Purchase Agreement (PPA) between CEB &West Coast Power (Pvt.) Ltd (WCPL) and an unsolicited proposal to supply LNG to West Coast Power Plant (WCPP)by New Fotress Energy(NFE).

“We were shocked to know this unwarranted move and would like to highlight the following vital concerns in this regard,” they pointed out.

The Ministry of Power and the CEB have already initiated a competitive bidding process to procure LNG for all the existing and future power plants around Colombo including the WCPP and it’s in the final stage. “Hence, as we have already communicated to Hon. Minister of Power by our letter dated 26 April 2021, that any unsolicited procurement which might badly affect the ongoing bidding process should not be encouraged.”

One of the main objectives of this committee is said to be negotiating terms of the existing PPA between the CEB & WCPL. The CEBEU has said “The PPA contains very sensitive parameters which finally account for payments running into billions of rupees. Hence, any amendments to this PPA (if required) should be made very carefully, as per the procurement rules and regulations of the country. The Chief Financial Officer of the ministry is responsible for ensuring such sound procedures are duly practiced in this process.”

The composition of the so-called ‘Technical Committee’ is also very strange; they pointed out adding, “We have doubts that this committee has been appointed with a predetermined outcome in mind,” CEBEU said.

The Union also said the Secretary, Ministry of Power should seriously consider all the implications of the move and take remedial action.



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Veteran actress Malini Fonseka passes away at the age of 78

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It has been reported that veteran Sri Lankan actress and former member of parliament,  Malini Senehelatha Fonseka, popularly known as ‘Malini Fonseka’ or the “Queen of Sri Lankan Cinema,” has passed away this morning (24) at the age of 76, while receiving treatment at a private hospital in Colombo.

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Duminda Dissanayake arrested after recovery of gold plated T-56 rifle

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Duminda Dissanayake

The Terrorism Investigation Division (TID) has begun extensive questioning of former Minister Duminda Dissanayake regarding how he came into possession of a gold-plated T-56 assault rifle and for what purpose it was hidden, after the weapon was seized from a house in the Havelock City luxury housing complex in Colombo.

Investigations have revealed that this T-56 rifle had been hidden for a long time at an official ministerial residence located in Bambalapitiya, which was previously assigned to Dissanayake.

Following the change in government, it was discovered that the former Minister had sent the T-56 rifle through his personal aide to the residence of a 68-year-old woman living in the Havelock City complex, after vacating his official residence.

The aide is reported to have placed the weapon in a travel bag and carried it on foot from the Bambalapitiya ministerial residence to the Havelock City apartment, where it was handed over to the woman.

Subsequent investigations into the T-56 rifle, which was recovered from the Havelock City residence, confirmed that the weapon belonged to former Minister Duminda Dissanayake, leading to his arrest and the commencement of further inquiries.

At that time, the Minister’s aide had also been taken into custody and provided full details regarding the weapon.

According to the aide’s statement to the police, he had been instructed by the former Minister to deliver the bag containing the weapon to the woman at the Havelock City residence during the process of clearing belongings from the official residence.

In line with this information, TID officers inspected a house in Kotte yesterday morning, but the former Minister was not found there. He was later arrested at a luxury residence in Thimbirigasyaya during a follow-up search.The Terrorism Investigation Division continues to carry out further investigations in connection with the case.

By Norman Palihawadane and Hemantha Randunu

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IMF signals difficult obstacle course for Lankan government to complete, including power tariff hikes to ensure cost recovery

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The International Monetary Fund (IMF) says that the approval for the fourth review of Sri Lanka’s programme, under the Extended Fund Facility (EFF), is contingent on the government completing prior actions, including restoring electricity cost recovery pricing.

Addressing the IMF’s weekly press briefing on Thursday the IMF spokesperson Julie Kozack stated that the completion of the review is subject to approval by the executive board and that the IMF expects the board meeting to take place in the coming weeks.

However, Kozack noted that the precise timing of that board meeting is contingent on two things – the first is the implementation of prior actions. She stated that the main prior actions are relating to restoring electricity cost recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism.

The second contingency is the completion of the financing assurances review which will focus on confirming multilateral partners committed financing contributions to Sri Lanka and whether adequate progress has been made in debt restructuring, the IMF spokesperson highlighted.

“So in a nutshell, completion of the review is subject to approval by the executive board. We expect the board meeting to take place in the coming weeks and it is contingent on the two said matters”, Kozack expressed.

On 25th April, the IMF staff and the Sri Lankan authorities reached staff-level agreement on the fourth review of Sri Lanka’s programme under the EFF. Once the review is approved by the IMF executive board, Sri Lanka will have access to about USD 344 million in financing.

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