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Govt. studying two options to overcome low-quality coal crisis
View(s):By Damith Wickramasekara
Just weeks after preliminary quality tests failed on a coal shipment from South Africa, the government is considering two options—including emergency spot purchasing—in case tests on further shipments from the same source also return negative results, upending coal supplies for power generation in the country.
The second option being studied is to start discussions with the foreign supplier to test future coal samples at the port of origin and, if quality failures are detected, to switch them to stocks that fit the Lanka Coal Company’s specifications. The coal was procured via tender for the Lakvijaya power plant.
Preliminary sample tests from the first shipment out of a total of 25 (60,000 MT) reportedly failed in terms of calorific value and ash content, but further tests are being conducted at an independent laboratory after the Indian agent, Trident Chemphar Ltd, objected to the first results.
The Sri Lankan government has already imposed a US$2 million penalty on the first shipment, while another ship is awaiting unloading.
A senior government source said that, even if the spot purchasing is opted for, purchases will have to be completed by at least mid-March to beat the monsoons. (Unloading is suspended between April and September).
“It’s the last option, but we will need the coal supplies within the next few weeks if we are to generate power from the coal plant,” the official said.
The coal tender is itself under scrutiny with allegations of corruption. It is alleged that the tender conditions had been altered to accommodate an Indian company, which imported the South African coal.
Raising the issue in Parliament this week, Opposition Leader Sajith Premadasa alleged that the timeline for the tender had been shortened and that, while a tender was normally valid for 42 days, this period had been reduced to just 21 days.
He demanded that reports approving the tender, as well as technical instructions and conditions for both the previous and current coal tenders, be presented to parliament.
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