CEB suffers 12,750 mn loss due to contracted coal supplier defaulting


by Saman Indrajith

The Ceylon Electricity Board (CEB) had suffered a loss of Rs. 12,750 million as the contracted supplier failed to supply 300,000 tonnes of coal to the Puttlam coal power plant last year, Power and Renewable energy Minister Ranjith Siyambalapitiya told Parliament yesterday.

Making a ministerial statement, Siyambalapitiya said that since 2009, five tenders had been called to register suppliers to the Puttlam Coal power plant and none of those tenders could be granted as the bidders had not submitted tenders conforming to the standards specified by the Cabinet Procurement Committee.  Of the five tenders one had been cancelled even without being opened. The remaining four had been rejected by the Cabinet. Therefore, for the last five years purchasing of coal had been done from a single supplier without adhering to proper tender procedures.

He said that the process of purchasing coal for the Puttlam coal power plant had been criticised by media and there had been several court cases. Some interested parties had lodged complaints with the Financial Crimes Investigations Division of the police and the Special Investigation Commission appointed by the President. The Puttlam coal power plant comprises three phases and currently operated with a capacity of 900 megawatts. Its three turbines could produce around 55% of the country’s total requirement of power. The three plants needed around 2.25 million tonnes of coal per year. The cost of coal per year stands around USD 150 million , the minister said.

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