Sri Lanka’s Power Minister pays double for coal purchase: Udaya Gammanpila

Udaya Gammanpila

June 16, 2015 (LBO) – Sri Lanka’s Power Minister is currently paying almost double for the purchase of coal at current world prices, Western Provincial Councilor Udaya Gammanpila charged.

Gammanpila, who broke away from the JHU at the last Presidential election, accuses his former ally Champika Ranawaka for intervening an alleged tender deal saying it is a mega deal.

According to Gammanpila, eight companies have forwarded their bids for a tender called for the purchase of 675,000 metric tons of coal on 08 April 2015.

“Three tenders were rejected due to major issues. One tender was rejected since they were unable to present past experience for such a contract. So there were only four tenders to be evaluated,”

“But the Minister presenting a special cabinet paper has demanded the cabinet approval for three rejected firms to be considered again,”

“This means that the company, the minister wants to forward the contract is not included in the last four companies. It is in the rejected category.”

Gammanpila says it is illegal to violate tender procedure by seeking cabinet approval for rejected tenders.

“This will be unfair for the companies that forwarded proper tenders. These four companies can go to courts and get a restraining order. If that happened the CEB will have to purchase coal from the existing supplier.”

According to Gammanpila, there is only one supplier who supplies coal to the CEB since 2010.

“They invited tenders twice and selected the one with technical errors. The other person went to court. So the tender got cancelled. CEB tend to purchase coal from the 2010 supplier,”

Gammanpila emphasized that the prices of coal has come down by almost half against 2010.

“May be the Minister is trying to get coal from the existing supplier paying twice the price. Either way this is a mega deal.” Gammanpila stressed.