Controversial power plant to move on bidder’s credit?

19 Mar 2022

Controversial power plant to move on bidder’s credit?

19 Mar 2022

By Maheesha Mudugamuwa The controversial 105 MW Kelanitissa gas turbines project is now before the Cabinet of Ministers for consideration following the competition of the re-tendering process that started last year, Ceylon Electricity Board (CEB) Chairman M.M.C. Ferdinando told The Sunday Morning. According to Ferdinando, the first tender to design and manufacture gas turbines supplying 105 MW at the Kelanitissa Power Station was cancelled, but it is now before the Cabinet following the completion of the re-tendering process. However, allegations have been levelled against the Ministry of Power for the cancellation of a tender which was awarded during the tenure of the former United National Front (UNF)-led Government on the basis of erroneous facts. The first tender was cancelled following a decision taken by the Cabinet of Ministers on 19 October 2020. In the same Cabinet decision, it had been decided to re-tender the procurement under supplier’s credit. Nevertheless, in an appeal made by the tender awardee of the first tender, China National Technical Imports and Exports Corporation (CNTIC), to Ministry of Power Secretary Wasantha Perera, it was stated that the CNTIC had been selected by the Technical Evaluation Committee (TEC) as the “lowest evaluated, technically, substantially, responsive bidder” for offering a price of Rs. 2,000 million less than the second evaluated bidder, M/S TSK Electronica Y-SA in Spain. The Standing Cabinet Appointed Procurement Committee Chairman, on behalf of the CEB, had invited sealed bids from eligible and qualified bidders for the design, manufacture, supply, installation, and commissioning of three 35 MW gas turbines for the Kelanitissa Power Station with capacity in the range of 105 MW to 130 MW consisting of open cycle identical gas turbines in April last year. The tenders were invited to design, manufacture, supply, workshop testing, transporting, installation, and connecting to 132kV existing Kelanitissa Grid Substation, commissioning, acceptance testing, warranty provisions, operations and maintenance training, and remedying the defects during the defect liability period of the gas turbine generator power plant of capacity between 105 MW and 130 MW as described in the technical specification. The project will be financed on the supplier’s credit financing basis and it is the responsibility of the bidder to make arrangements of finance for 100% of the bid price, according to the CEB.

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Controversial power plant to move on bidder’s credit?

Controversial power plant to move on bidder’s credit?

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