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The Authorities has determined to cancel a young awarded to a China-Pakistan consortium to provide Liquefied Pure Gasoline (LNG) and lay a pipeline community after being chosen via a global open aggressive bidding course of and as a substitute think about a proposal by an Indian firm.
The China-Pakistan Engro Consortium was chosen final 12 months as a part of a step in direction of lowering the price of energy manufacturing.
Nonetheless, final Monday, Energy and Power Minister Kanchana Wijesekera submitted a Cupboard paper titled “Revisiting the Nationwide Power Coverage Associated to the Growth of Pure Gasoline Infrastructure within the Nation,” to droop the continuing LNG procurement course of.
Accordingly, the suspension covers the Growth of a Floating Storage and Re-gasification Unit (FSRU) off Kerawalapitiya on a Construct, Personal, and Function foundation and a suitable mooring system on Construct, Personal, Function and Switch foundation. It additionally covers the related tasks – the event of Offshore and Onshore Re-gasification Liquefied Pure Gasoline (RLNG) Transmission Pipeline Community with an Onshore Receiving Facility (ORF) and an related System from the Floating Storage and Re-gasification Unit (FSRU) to current and future Kerawalapitiya and Kelanitissa Energy Crops on Construct, Personal, Function and Switch (BOOT) foundation.
After following the correct tender course of, the Cupboard-Appointed Negotiating Committee (CANC) in August final 12 months granted approval to award the tender to the Engro Consortium.
Accordingly, though the Energy and Power Ministry needed to submit a cupboard paper to allow the tender to be awarded thus, the ministry delayed the method, Ministry sources mentioned.
The Sunday Instances learns that the method had been delayed because the Indian authorities strongly objected to awarding this tender to the China-Pakistani firm.
Nonetheless, lastly, the topic minister had requested cupboard approval to droop this formally permitted tender, beneath these circumstances.
The Ministry had as a substitute tried to award this tender to Petronet LNG Ltd. of India, as an unsolicited procurement, however for the reason that firm didn’t have any expertise concerning FSRU, the ministry had rejected the request and mentioned if the Indian authorities supported the corporate, they might be capable of provide LNG in containers.
“This may badly hamper the investor confidence and no real investor will come ahead in future to this nation,” the official mentioned.
A Ceylon Electrical energy Board (CEB) prime official mentioned, “It will likely be a pricey answer as there can be no competitors, with costs being decided by the Indian firm”. He mentioned it might have an effect on the electrical energy tariff which might be elevated and all prices can be handed on to the shoppers.
The CEB’s Least Value Lengthy Time period Era and Growth Plan (LCLTGEP) (2018-2037), which was permitted by the Public Utilities Fee of Sri Lanka (PUCSL) in 2018, identifies the necessity for changing furnace oil and diesel energy crops to LNG energy crops to scale back energy era prices.
Accordingly, the CEB known as for worldwide aggressive open tenders from February 18, 2021 to June 25, 2021, and two bidders got here ahead.
At that time, the US-based New Fortress Power Firm which gave rise to a lot controversy in 2021, had, with out submitting an open bid for this tender, offered an unsolicited proposal to the federal government. The then Gotabhaya Rajapaksa authorities which supported this unsolicited proposal had even signed an settlement to promote 40% of the shares of the 300 MW Treasury-owned Kerawalapitiya Yugadhanavi Diesel Energy Plant to the New Fortress Power.
Nonetheless, resulting from robust objections to the deal, the settlement had not been carried out to date.
Towards this backdrop, the CANC granted approval on August 4 final 12 months to award the tender to the China-Pakistan Consortium, one of many two corporations which had submitted correct bids for the tender.
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