Govt. to continue with controversial Swiss Singapore tender

by Rukshana Rizwie

The Ministry of Power and Renewable Energy will continue to procure coal for the Lakvijaya Power Plant from Swiss Singapore at a rate of USD 58 Per metric ton until the contract expires in April next year, Secretary to the Ministry Dr. Suren Batagoda told the Sunday Observer.

"We will continue to purchase coal at the stipulated rate from Swiss Singapore Overseas Enterprise until 30 April 2017 when the contract ends," he said adding that the Ministry was awaiting instructions from the Cabinet Sub-committee on Economic Management on how to proceed with the tender.

A comprehensive report on the coal tender by a three-member committee comprising eminent academics was presented to the Cabinet, and now referred to the sub-committee on economic management to arrive at a decision next week. "Even if the Sub-committee decides to cancel the tender, the Supreme Court ruling very clearly states that we may cancel but we need to give the requisite notice.

It means we need to give a minimum of three months notice before we cancel," he added.

He refuted claims that the Ministry was 'going back' to the previous company stating that the government was merely continuing with an existing contract.

Meanwhile, the Lanka Coal Company headed by Chairman Maithri Gunaratne told the Sunday Observer that since the tender procedure was flawed, the process should be cancelled and fresh tender called.

Chief Justice K. Sripavan, in his judgment has stated, "I have no alternative but to declare the decision of the SCAPC (Standing Cabinet Appointed Procurement Committee) to award the tender to the 22nd Respondent (Swiss Singapore) cannot stand valid in the eyes of the law."

The application was however dismissed owing to preliminary objections.