Home / Front Page/ Govt. to review LNG power plant

Govt. to review LNG power plant

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 3 December 2019 02:25

  • New Power and Energy Minister calls for comprehensive report on plant that received Cabinet approval in Feb.  
  • Says will hold discussions on Thursday
  • Open to reissuing tender if due process has not been followed  

By Shailendree Wickrama Adittiya

The Government has decided to review the Kerawalapitiya LNG plant with the new Power and Energy Minister Mahinda Amaraweera calling for a comprehensive report on the matter yesterday. 

A decision will be taken regarding the Liquefied Natural Gas (LNG) power plant tender following the submission of a comprehensive report, Passenger Transport, Power, and Energy Minister Mahinda Amaraweera said.

While the Minister has requested for a report that will look into delays in the LNG power plant project as well as the issuing of the tender to a foreign company, a decision will be made depending on its contents. “We will look into if the tender can be reissued to a local company,” he said.

“LTL Holdings, which is a subsidiary of Ceylon Electricity Board, was the lowest bidder. However, the tender was issued to a Chinese-owned company,” Amaraweera explained, adding that the LNG project was proposed in 2016 and should have been completed by now.

While discussions on the report are to be held on Thursday, the Passenger Transport, Power and Energy Ministry, in a statement issued yesterday, said the country incurred a loss of over Rs. 90 billion due to this deal.

The statement added the tender was issued to a Chinese-owned company despite a local company offering the lowest bid. This was in accordance to the bidding of certain Ministry officials, the statement charged. 

In February Cabinet gave approval for Consortium of GCL China Windforce and RenewGen to set up a 300 MW LNG power plant in Kerawalapitiya. It was to be one of two LNG power plants approved through a Cabinet paper presented by former Power and Energy Minister Ravi Karunanayake. 

They were to be the first plant to be constructed after the Lakvijaya Coal Plant in Norochcholai was completed almost a decade ago. The Ceylon Electricity Board (CEB) has not been able to commission any new power plants included in their Long Term Generation plants since 2013.

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

Roots of the crisis

Saturday, 14 December 2019

The candidates who had genuinely contested the Presidential Election had elaborate and attractive election manifestos. But none of them had a pragmatic program to address the basic question of how to overcome the extensive crisis Sri Lanka is facing.

What price reforms now that progress rules?

Friday, 13 December 2019

It was a famous victory. A shadow of a doubt persists after an election commission member spoke up recently, after the event, about an alleged irregularity somewhere in the voting system works. But this would be churlish, buffoonish and academic to t

Assessment of fitness and propriety of directors and officers

Friday, 13 December 2019

In the early ’80s, a businessman turned financier from the hill capital started a public deposit canvassing drive by offering 20% interest per month. The depositors were offered on the spot payment of 20% as interest for the first month for their d

How to select top officials to public corporations

Friday, 13 December 2019

It is commendable that the President wants to select suitable decision-makers to public corporations without them being mere and ad hoc political appointments. However, the process thus far seems somewhat weak. Various people are complaining about th

Columnists More