Award of LNG power plant contract Tender procedures contravened

Published : 9:12 am  June 22, 2018 | No comments so far |  | 

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Untitled-8By Hasitha Ranga Gunathilaka   

The award of the contract for installation of the proposed Liquid Natural Gas (LNG) power station at Kerawalapitiya to a Chinese Company regardless of lower bidders is contrary to the provisions of the Electricity Board Act and the amendments made to the act in 2013, former Commissioner of Sri Lanka Human Rights Commission Dr. Prathibha Mahanama says.   


The award of the contract to a higher bidder ignoring lower bidders, contravenes the law, as the provision in the act requires that it be awarded   to the lowest bidder.   Apart from the discrepancy in awarding the contract, under the prevailing law, 25 percent of the shares should be allocated to the government or any government institutions, when power plants of over 25 megawatts are installed. Hence it amounts to a large-scale fraud, states Dr. Mahanama.   
The Secretary of Power and Energy has no ethical right to contravene the tender procedure, by merely sending a report to the Procurement Appeal Board. Even under the stipulations prescribed by the Sri Lanka Public Utility Commission, a tender should be awarded to the lowest bidder.   


Dr. Mahanama says it is more suitable to award this tender to Lakdanawi Company, if it is qualified according to the tender procedure, as it is a company with CEB share ownership.     

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