Final decision on Kerawalapitiya LNG plant delayed until SC verdict on FR case

By Nishel Fernando

President Maithripala Sirisena yesterday directed the Cabinet to delay the final decision on the controversial tender for 300 MW Kerawalapitiya LNG power plant until the Supreme Court’s verdict on a fundamental rights petition filed by a consumer rights movement is given. President Sirisena made the decision at yesterday’s Cabinet meeting after considering the recommendations submitted by the National Procurement Commission (NPC) and Finance and Mass Media Minister Mangala Samraweera, sources said.

Presenting a Cabinet paper on June 22, Samraweera backed the memorandum submitted by Power and Renewable Energy Minister Ranjith Siyambalapitiya to award the ‘build-operate-own and transfer’ (BOOT) tender to the second lowest bidder, China’s Golden Concord Holdings (GCL) with its local partners WindForce & RenewGen. 

Samaraweera is said to have made the recommendation mainly based on the possible case of conflict of interest against Lakdanavi, as majority shares of Lakdanavi, a subsidiary of LTL Holdings, is owned by the Ceylon Electricity Board (CEB).

Lakdanavi presented the lowest bid for the power plant. 

However, during the appeal process, the Procurement Appeal Board (PAB) had rejected Standard Cabinet Appointed Procurement Committee’s (SCAPC’s) decision to award the tender to Lakdanavi and instead recommended the tender to be awarded to GCL Windforce & RenewGen, which was also backed by the Ministry of Power and Renewable Energy.

Minister Siyambalapitiya presented the memorandum to award the contract to GCL Windforce & RenewGen two weeks back. However, due to objections from several Cabinet Ministers, the Cabinet decided to seek recommendation of National Procurement Commission (NPC) for the final decision.

German Ambassador to Sri Lanka, Jorn Rohde, also recently raised concerns over the ‘transparency’ and ‘openness’ of the entire tender procedure.

The said fundamental rights petition was taken up by the Supreme Court on July 1 and the three-judge Supreme Court bench postponed the next hearing for July 11.

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Samaraweera is said to have made the recommendation mainly based on the possible case of conflict of interest against Lakdanavi, as majority shares of Lakdanavi, a subsidiary of LTL Holdings, is owned by the Ceylon Electricity Board (CEB).

Lakdanavi presented the lowest bid for the power plant. 

However, during the appeal process, the Procurement Appeal Board (PAB) had rejected Standard Cabinet Appointed Procurement Committee’s (SCAPC’s) decision to award the tender to Lakdanavi and instead recommended the tender to be awarded to GCL Windforce & RenewGen, which was also backed by the Ministry of Power and Renewable Energy.

Minister Siyambalapitiya presented the memorandum to award the contract to GCL Windforce & RenewGen two weeks back. However, due to objections from several Cabinet Ministers, the Cabinet decided to seek recommendation of National Procurement Commission (NPC) for the final decision.

German Ambassador to Sri Lanka, Jorn Rohde, also recently raised concerns over the ‘transparency’ and ‘openness’ of the entire tender procedure.

The said fundamental rights petition was taken up by the Supreme Court on July 1 and the three-judge Supreme Court bench postponed the next hearing for July 11.