Hambantota Port tender process under question
View(s):Questions are being raised over a move by the Sri Lanka Ports Authority (SLPA) to call for tenders to operate the Hambantota tank farm and its bunkering facilities on a 25 year lease to investors, since the time period was just two weeks. The document, received by some companies last week, called for proposals from investors with a deadline for proposals as March 10, 2016. “Normally tenders are opened for around three or more months and companies then can provide a proper application with foreign expertise. How can you get serious proposals in such a short time,” one private sector industry official said.
An undated document titled “Basic Guideline Document for Investment Proposals for Operation of Bunkering Facility and Tank Farm Port of Hambantota” sources state could have been in circulation since mid February. When the Business Times contacted Hambantota Port Company General Manager Sarath Perera, he said that they have called for tenders for the marine oil and gas at the tank farm adding that at present they had stopped bunkering operations since April last year. Industry sources said the qualifying criteria for the project proponent needs to be an active player in the oil industry in the procurement and sale of bunker fuels and operation of a marine bunker terminal with barges that should have handled more than 100, 000 MT of bunker fuels per month over 24 months in the last three years.
This clearly indicates that the project proposal was targeting overseas parties as the Sri Lankan bunker market had only carried out about 30, 000 MT per month, they said. Further, overseas bidders would have to visit the tank farm to make a technical evaluation of the facility to understand the requirements and capabilities which was not feasible within two weeks.The bunkering facility and tank farm at Hambantota comprises of 14 tanks with a total storage capacity of 80,000 m3 for aviation fuel and 6000 m3 for LPG, the document, received by the Busines Times, states.