Over US$ 2 Mn penalty on substandard coal shipment – Minister

Colombo, Feb 24 (Daily Mirror) - The first coal shipment, containing 59,831 metric tons, was found to be below the required calorific value standard and a penalty of approximately US$ 2.07 million was imposed, Cabinet Spokesman and Minister Nalinda Jayatissa said.

Penalties were also levied on subsequent shipments — US$ 436,000 for the second, US$ 484,929 for the third, US$ 345,652 for the fourth, about US$ 500,192 for the fifth, and US$ 510,677 for the sixth shipment.

Addressing the weekly post-Cabinet media briefing, the Minister rejected allegations raised by Opposition lawmakers and said the coal procurement process was carried out in full compliance with established guidelines and approved by the relevant authorities, including the Procurement Commission.

He said 26 registered suppliers had obtained bidding documents, of which 10 submitted bids. An initial 21-day bidding period was later extended to 28 days, followed by a designated appeals period. No appeals were submitted by unsuccessful bidders.

Explaining the quality control process, Jayatissa said a load port inspection report is first obtained from a recognised laboratory before a shipment is accepted. Only consignments with a calorific value above 5,900 kilocalories per kilogram are permitted.

After unloading in Sri Lanka, a discharge port inspection is conducted through an internationally recognised laboratory. He said Cotecna has been selected through a procurement process for a two-year period to carry out these inspections.

According to the Minister, a double penalty is imposed if the calorific value falls below 5,900 kcal/kg, while a single penalty applies if it is between 5,900 and 6,150 kcal/kg. Shipments above 6,150 kcal/kg are accepted without penalty.

He added that 10 ships have arrived so far, with eight fully unloaded and the remaining in the process of discharge, while reports for six shipments have been received.