By Maheesha Mudugamuwa
The Ceylon Electricity Board (CEB) will commence the construction of the 300 MW Liquefied Natural Gas (LNG) power plant in Kerawalapitiya on 17 November to commemorate the completion of President Gotabaya Rajapaksa’s first year in office, CEB Chairman Eng. Vijitha Herath told The Sunday Morning.
Once construction begins, the 300 MW LNG power plant would be the first power plant to begin construction in eight years following the commencement of the Norochcholai Coal Power Plant in 2013.
The controversial Kerawalapitiya LNG power plant was delayed by two years due to the issues pertaining to the awarding of the contract. With final cabinet approval received last week, the project has been reviewed thrice by the Cabinet of Ministers of two governments.
Furthermore, The Sunday Morning learnt that the Power Purchasing Agreement (PPA) between the CEB and Lakdhanavi Ltd. would be signed this week.
In February this year, the Government awarded the contract to construct the second phase of the 300 MW LNG power plant in Kerawalapitiya to Lakdhanavi Ltd., overturning a cabinet decision of the previous Government taken just over a year prior.
The approval, as learnt by The Sunday Morning, is conditional upon Lakdhanavi’s withdrawal of a petition filed at the Supreme Court (SC) against the contract being originally awarded to a Chinese company. GCL China Windforce and RenewGen. Lakdhanavi filed a petition at the SC soon after the decision was reached in February last year, as it was the lowest bidder, while GCL China Windforce and RenewGen was the second lowest bidder.
Originally, cabinet approval was granted to award the tender to set up two 300 MW LNG power plants in Kerawalapitiya with the Procurement Appeal Board (PAB) approving the awarding of the second contract to Lakdhanavi Ltd. At the time, then Power and Energy Minister Ravi Karunanayake said the decision to award the power plants to the first and second bidder in a single tender for an independent power producer was bipartisan.
However, concerns have been raised over the second proposal submitted to the Cabinet which received its approval last week, as amendments have been made by the CEB and Lakdhanavi Ltd. to the original project proposal.
The controversial Kerawalapitiya LNG power plant was delayed by two years due to the issues pertaining to the awarding of the contract. With final cabinet approval received last week, the project has been reviewed thrice by the Cabinet of Ministers of two governments.
Furthermore, The Sunday Morning learnt that the Power Purchasing Agreement (PPA) between the CEB and Lakdhanavi Ltd. would be signed this week.
In February this year, the Government awarded the contract to construct the second phase of the 300 MW LNG power plant in Kerawalapitiya to Lakdhanavi Ltd., overturning a cabinet decision of the previous Government taken just over a year prior.
The approval, as learnt by The Sunday Morning, is conditional upon Lakdhanavi’s withdrawal of a petition filed at the Supreme Court (SC) against the contract being originally awarded to a Chinese company. GCL China Windforce and RenewGen. Lakdhanavi filed a petition at the SC soon after the decision was reached in February last year, as it was the lowest bidder, while GCL China Windforce and RenewGen was the second lowest bidder.
Originally, cabinet approval was granted to award the tender to set up two 300 MW LNG power plants in Kerawalapitiya with the Procurement Appeal Board (PAB) approving the awarding of the second contract to Lakdhanavi Ltd. At the time, then Power and Energy Minister Ravi Karunanayake said the decision to award the power plants to the first and second bidder in a single tender for an independent power producer was bipartisan.
However, concerns have been raised over the second proposal submitted to the Cabinet which received its approval last week, as amendments have been made by the CEB and Lakdhanavi Ltd. to the original project proposal.