Sri Lanka’s Finance Ministry to award tender for second LNG plant in Kerawalapitiya to a Chinese consortium

Sri Lanka’s Finance Ministry to award tender for second LNG plant in Kerawalapitiya to a Chinese consortium

The Finance Ministry of Sri Lanka has reportedly recommended the awarding the Build Operate Own and Transfer (BOOT) tender for the second LNG power plant in Kerawalapitiya to Chinese consortium GCL, Winforce and Renewgen.
The Daily FT recently reported that the presenting of the Cabinet paper, Finance Minister Mangala Samaraweera had recommended GCL to set up the 300MW power plant, outlining a number of reasons for disqualifying the lowest bidder Lakdhanavi Ltd., a fully owned subsidiary of Ceylon Electricity Board (CEB).
The bid was US$ 175 million, which half of engineers estimate to be valued at US$ 300 million.
The Cabinet had appointed a three-member committee several weeks ago after a number of Ministers protested against the proposal made by the Power and Renewable Energy Minister to award the tender to GCL.
The subject Minister Ranjith Siyambalapitiya had made the proposal based on the recommendation given by the Procurement Appeal Board, which overturned the decision made by the Cabinet-appointed procurement committee to award the tender to the lowest bidder, Lakdhanavi.
However, it has now been reported that the tender is likely to be awarded to the Chinese company.

OSL take:

With a looming power crisis clouding Sri Lanka’s power and energy sector there are many opportunities to provide energy solutions to the Sri Lankan government. The government is on the lookout for renewable energy generation options and foreign companies engaged in such projects could look at opportunities for projects in Sri Lanka’s power and energy sector.

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Article Code : VBS/AT/20180710/Z-2

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