gossip lanka

Rs. 50,000 m annual loss from natural gas power plant

The manner of awarding the tender for a 300 megawatt natural gas power plant will bring in negative impacts and an annual financial loss of more than Rs. 50,000 million to the country, reports say.

Eight bidders submitted their bids for the project under international competitive bidding.

In the first stage, the technical evaluation committee recommended
to open six bids and evaluate the related technical and financial reports.

However, the cabinet procurement committee, in an authoritarian manner, opened the bid by Samsung only, the media reported.

Power and energy minister Ranjith Siyambalapitiya said the work relating to the tender would be undertaken following a proper investigation.

However, ministry secretary Dr. B.M.S. Batagoda and another official, G.S. Vithanage, opened the Samsung bid on August 11.

Samsung violated tender conditions

There, it transpired that the bid had violated the tender conditions.

Samsung had submitted only a soft copy of the financial and account reports which could not be opened.

However, the two officials disregarded that disqualification and recommended Samsung to be the only qualified company to build the 300 megawatt power plant.

Its bid estimates the total cost of the project at 330 million US dollars, although energy experts are of the view that that sum could go to build a 500 megawatt plant.

Also, Samsung’s energy capacity is below that of the internationally accepted standards, experts say.

The CEB engineers union warns that this could also increase the price for the generation of electricity.