LNG tender goes to a Chinese company

13 February 2019 04:03 am - 10     - {{hitsCtrl.values.hits}}

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The Cabinet yesterday decided to award the tender for the construction of the LNG power plant in Kerawalapitiya to a Chinese company.

Controversy surrounds this move because Lakdhanavi, a local company which made a lower bid for the project, was denied the tender. The power plant is to be built to generate 350 megawatts of electricity.

According to engineers attached to the Ceylon Electricity Board, the country will lose Rs.75 billion within a span of 20 years if the tender was awarded to a higher bidder.

According to reports the tender was awarded violating the due procedures to be followed in such cases. Earlier, the government was keen to award the contract to a Chinese company for setting up such a plant in Hambantota.

Power and Energy Minister Ravi Karunanayake obtained Cabinet approval for this project.

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  • ShakeSpear Wednesday, 13 February 2019 04:40 AM

    The awarding of tenders need not be for the lowest bid. In a specialized project like LNG power plants the technical aspects and the experience need to be considered. This is why there is two envelop bidding. More details of the proposal need to be studied before coming to conclusions.

    Lord Wolfstein Wednesday, 13 February 2019 12:24 PM

    This is correct. A Chinese power plant will run about 10 years, while a German one can run 100 Years.

    Ami Wednesday, 13 February 2019 05:44 AM

    If its the Cabinet.. it includes the Boss.. So this is a collective decision... isn't it ?

    starvation Wednesday, 13 February 2019 06:32 AM

    How much ravi was awarded as a commission. is it 20% or 30%.

    Sambo Wednesday, 13 February 2019 07:24 AM

    Chinese made are only for some years and always breakdown. But the kick back are very high. Are we not a shamed. How many times did the Kerawalapitiya breakdown. Our minister are pawning the public for their benefit.

    Sil Wednesday, 13 February 2019 07:36 AM

    Frankly speaking, minister in charge is well known crook,he wont do anything if his not sufficiently bribed.so Chinese are extremely good in that, so nothing to surprise

    samson Wednesday, 13 February 2019 09:23 AM

    Tenders need not be awarded to the lowest, it depends on various factors. If the CEB engineers felt otherwise this case may be on the amount of kickbacks. i do not understand why we cannot go for large scale solar power. There are many ways of doing this.

    atom Wednesday, 13 February 2019 09:25 AM

    oh Its Ravi again... im sure there will be a financial outcome within next year...

    Rizwan Wednesday, 13 February 2019 10:04 AM

    It is a good decision to award to a Chinese company than the local company owned by three well known crooks who runs that company showing to the public as a subsidiary to CEB.Already they are earning in millions of USDs in this power supply mafia with the help of certain CEB roughs.

    p nonis Wednesday, 13 February 2019 10:34 AM

    After all the problems with the power stations constructed by the Chinese, This is a stupid decision by the Cabinet, considering the Lowest bidder, ands also barring him from any more bidding with the CEB according to reports. This will be a another problem for the next Govt, considering the previous problems in cabinet decision making by passing the Lowest bidder.


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