Inferior-Quality Coal Deal Could Lead to Power Cuts: MP

By Yohan Perera  

The purchase of questionable, inferior-quality coal could lead to power cuts, as the capacity of the consignment already procured is insufficient, an opposition MP warned yesterday.  

Opposition MP S.M. Marikkar, who is also Chairman of the Sectoral Oversight Committee on Infrastructure Development and Strategic Development, told the media that an additional 341 metric tonnes of coal would be required to operate the Lakvijaya Power Plant at full capacity.He said the required consignment could not be brought into the country before April this year, a situation that could create a power shortage and eventually result in power cuts.  

Marikkar further stated that Sri Lanka would have to spend an additional Rs. 10 billion to purchase extra coal, describing it as a waste of state funds. He added that the Sectoral Oversight Committee on Infrastructure Development and Strategic Development would investigate the matter and would come out with more disclosures soon.   

The MP also alleged that tender procedures had been altered to enable coal suppliers with less experience to secure contracts. According to him, the time frame for submitting tenders had been reduced from 42 days to 21 days. In addition, he claimed that the qualifying criteria for bidders had been revised.“Previously, a supplier had to have supplied more than one million metric tonnes of coal to qualify for a bid. This requirement has now been reduced to 500,000 metric tonnes,” he said.  

Marikkar noted that President Anura Kumara Dissanayake should not be held responsible for the alleged scam, claiming that individuals around the President were responsible for the fraudulent activities.  

Meanwhile, Secretary to the Ministry of Power and Energy, Udayanga Hemapala has dismissed the allegations, stating that the issue is not linked to fraud. He told the media that an internal audit of the Ceylon Electricity Board (CEB) is due to be conducted this week. He also said the CEB investigates the use of new coal stocks before existing stocks are fully exhausted.