Home / Energy/ LTL Unions cries foul over Power Ministry decision

LTL Unions cries foul over Power Ministry decision

Comments / {{hitsCtrl.values.hits}} Views / Thursday, 21 February 2019 01:51


Raising concerns over the basis of awarding the Build, Operate, and Transfer tender to set up a second 300MW LNG power plant to Lakdanavi Ltd., the LTL Staff Union yesterday feared its fully-owned subsidiary may face bankability issues as a result. 

“The bankability of the project is in jeopardy, due to a lack of clarity on which basis the tenders are being awarded, as it is outside of the accepted system,” LTL Holdings Staff Union President Sameera Ganegoda said.

Two weeks ago, the Cabinet approved a proposal by Power, Energy and Business Development Minister Ravi Karunanayake to award the tender to set up the BOT 300MW LNG plant, which was tendered in 2016, to the GCL Consortium as per the Procurement Appeal Board (PAB) recommendations, while approving the awarding of a project to build a second 300MW LNG plant at the same location to LTL, at the rates quoted by the company for the first tender. 

Ganegoda questioned the basis under which the tender was awarded to the GCL Consortium, if the LTL tender, which came in lowest, has been deemed acceptable by the Cabinet to be awarded a second tender with the same specification. 

“If the Cabinet accepts our bid as a credible party at the price we quoted, then the tender should be awarded to us as we are the lowest bidder,” he stressed. 

In a two-year-long procurement process where several Technical Evaluation Committees were appointed to assess the same tender, Lakdanavi Ltd. was recommended to be awarded the contract twice, while GCL was also recommended twice. The proposal by Karunanayake followed PAB recommendations, but also recommended that the project for another plant, to be commissioned in 2021, be awarded to Lakdanavi, on the rates given for the first tender. 

Bidding by Lakdanavi Ltd. has been mired in controversy, as other bidders have raised concerns of conflicts of interest, due to the role played by the Ceylon Electricity Board in the company. Ceylon Electricity Board owns 63% of LTL Holdings, of which Lakdanavi is a subsidiary.

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Revitalising the tourist inflows

Wednesday, 22 May 2019

Easter Sunday 21 April terror acts have dealt a very heavy blow on tourism. The inflow has dried up for the moment while it can be presumed that forward selling too may have become sluggish. It is noted that Government has introduced a series of meas

Truth has now arrived, and falsehood has perished

Wednesday, 22 May 2019

“And say: Truth has now arrived, and Falsehood has perished: for Falsehood by its very own nature is bound to perish.” Holy Quran: Chapter 17 Verse 81. Every discussion, debate and discourse that we see and hear over the audio – visual and prin

Afghan refugees face Jaffna’s hostility: These Sri Lankans are crazy

Wednesday, 22 May 2019

Abbas Ahmadi, an IT specialist, was rather high in the Afghan provincial civil service. He is of Hazara ethnicity and persecuted by the majority Pashtuns who ironically dominate the ruling faction as well as the rebelling Taliban.The Hazaras are inpa

One month gone: No charge on over 200 Catholics murdered

Wednesday, 22 May 2019

It’s been one month since the murder of around 300 innocent Catholic children and parents but no has yet been charged for the biggest negligence of duty that Sri Lanka has seen in recent history. The President and Prime Minister have both denied a

Columnists More