Coal procurement tenders cancelled for second time
Sri Lanka’s coal procurement process has become a cumbersome affair for state authorities following the cancellation of the award of the spot and term tender twice within less than two months this year; first over legal issues and secondly failure of bidders to comply with guidelines.
This will result in the shutdown of Norochcholai Coal Lakwijaya power plant due to insufficient coal next year compelling the Ceylon Electricity Board to continue the ongoing power cut for long hours, Energy Ministry sources divulged.
The second term tender to procure 2.2 million metric tonnes for 18 months to April 2024 at a minimum of a 180-day credit facility fixing the deadline to submit bids on October 25 and later it was extended to November 4, and that was also canceled this week. These bids were called following the cancellation on September 23 of the award of a 3-year term tender to Russia’s Suek AG/Black Sand Commodities.
That decision was taken after Suek AG withdrew from the contract worth US$ 1.4 billion under public pressure and the Fundamental Rights Case filed by Ven. Omalpe Sobhitha Thera against this tender procedure.
The Cabinet of Ministers at its meeting on Monday has approved the cancellation of the second spot and term tender.
Power and Energy Minister Kanchana Wijesekera said the decision was taken on the recommendation of the technical committee and the procurement committee as the bidders had failed to meet the qualification criteria and failed to comply with the tender guidelines.
He disclosed that the procurement committee will call for Expressions of Interest from prospective suppliers and government to government proposals, on a long-term credit basis.
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