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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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Prime Minister meets with U.S. Ambassador and USAID delegation to discuss future of development cooperation

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Prime Minister Dr. Harini Amarasuriya, met  Ms. Julie J. Chung, U.S. Ambassador to Sri Lanka, and Ms. Maureen Hsia, Acting Mission Director and Programme Office Director for USAID Sri Lanka and Maldives at the Parliament recently. The meeting focused on the evolving framework of U.S. foreign assistance to Sri Lanka and potential avenues for sustained cooperation.

The US delegation briefed the Prime Minister on the recent three-month moratorium imposed on all foreign assistance by the United States, pending a comprehensive review by the U.S. Department of the Treasury. Discussions centered on the implications of this decision, particularly its potential impact on key development initiatives such as the women’s shelter project, and broader humanitarian concerns if current support mechanisms are disrupted.

Both parties acknowledged the critical role of the United States as a global leader in development and emphasized the importance of continuing bilateral collaboration. The Prime Minister welcomed the United States’ commitment to identifying alternative modalities to ensure uninterrupted support for Sri Lanka’s development priorities. In addition, the meeting addressed tariff negotiations, recognizing their relevance in bolstering economic resilience and supporting the country’s long-term growth trajectory.

Also in attendance were Ms. Angelina Hermon, Acting Director of the Office of Governance and Vulnerable Populations, and Ms. Nirmi Vitharana, Project Management Specialist from the Office of Economic Growth. Representing the Government of Sri Lanka were Pradeep Saputhanthri, Secretary to the Prime Minister; Ms. Sagarika Bogahawatta, Additional Secretary to the Prime Minister; and Ms. Pramuditha Munasinghe, Director of the North America Division at the Ministry of Foreign Affairs.

[Prime Minister’s Media Division]

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President briefs Sri Lankan delegation leaving for tariff related discussions in Washington

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A Sri Lankan delegation is set to participate in discussions in Washington, D.C., focusing on tariff-related matters, following an invitation extended by the Office of the United States Trade Representative (USTR). This is the second in-person meeting aimed at ongoing efforts to strengthen bilateral trade relations between the two nations.

This initiative builds on several prior virtual interactions held between the USTR and Sri Lankan officials, and underscores a commitment to deepening economic ties. The upcoming talks are anticipated to explore avenues for enhancing trade cooperation and securing favourable outcomes for Sri Lanka, in light of current economic priorities.

Ahead of the visit, a high-level meeting was convened today under the leadership of President Anura Kumara Disanayake to ensure the country’s interests are well represented. The discussion focused on aligning the delegation’s approach with Sri Lanka’s broader economic strategy, ensuring the best possible outcomes from the upcoming discussions.

Key participants at the meeting included Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma; Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A. Vimalenthirarajah; Duminda Hulangamuwa, Senior Economic Advisor to the President; Governor of the Central Bank Dr. Nandalal Weerasinghe; Secretary to the Ministry of Finance, Planning and Economic Development K.M.M. Siriwardana; Nirmal Vigneshwaran, representing the Attorney General’s Department; and Dharshana Perera from the Ministry of Foreign Affairs.

Details of the discussions in Washington are expected to be made available following the conclusion of the meetings.

[PMD]

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Professor I.M. Karunathilake appointed Vice Chancellor of the University of Colombo

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President Anura Kumara Disanayake has appointed Professor I.M. Karunathilake as the new Vice Chancellor of the University of Colombo.

The official letter of appointment was handed over to Professor Karunathilake on Friday  (23) at the Presidential Secretariat by Secretary to the President Dr. Nandika Sanath Kumanayake.

Professor  Karunathilake is a pioneer in the field of medical education in Sri Lanka and holds the distinction of being the first Professor of Medical Education at the University of Colombo. He has been a member of the university’s academic staff since June 2000. He is an alumnus of the University of Colombo and the University of Dundee in Scotland, UK, and also holds senior fellowships from  UK’s Higher Education Academy and the Royal College of Physicians of Edinburgh.

Internationally recognized for his expertise in medical education, Professor Karunathilake has contributed significantly at both regional and global levels through his work with leading organizations such as the World Health Organization (WHO), the World Bank, the Asian Development Bank (ADB), the Asia Pacific Academic Consortium for Public Health (APACPH), and the South-East Asian Regional Association for Medical Education (SEARAME).

He has previously served as the Secretary of the Sri Lanka Medical Association (SLMA) and was the founding President of the College of Medical Educationists (CME) in Sri Lanka. He has also served as Vice President of the Organization of Professional Associations (OPA). In 2021, Professor Karunathilake was unanimously elected as Secretary-General of the APACPH, becoming the first Sri Lankan to hold this prestigious position.

With this appointment, Professor I.M. Karunathilake becomes the 20th Vice Chancellor of the University of Colombo, an institution originally established in 1921 as the University of Ceylon.

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