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Coal supplies: Delays in tender risk scheduled unloading

Coal supplies: Delays in tender risk scheduled unloading

30 Jul 2023 | By Maheesha Mudugamuwa

Sri Lanka’s procurement of coal for the upcoming unloading season is already mired in controversy, with reports indicating that the selection of a coal quality tester, essential to ensure quality control of the coal supply to the Norochcholai Power Plant, is now under a cloud of suspicion.

The tender to select the ‘coal surveyor’ has to be finalised as soon as possible in order to commence the next coal unloading season in October, according to Lanka Coal Company (LCC) Chairman Shehan Sumanasekara.

Nevertheless, as The Sunday Morning reliably learns, the tender has now come under the spotlight, amid allegations that the Technical Evaluation Committee (TEC) is attempting to select the highest bidder out of three companies that had bid for the tender.

According to highly-placed sources, three international companies specialised in testing, inspection, and certification which are based in France, India, and Switzerland have submitted bids for the tender. 

It is learnt that the TEC has selected but not yet finalised the Swiss-based company, which had been continually supplying the service to Sri Lanka.

According to one senior official, there are allegations against the Swiss-based company and it has been banned by an Indian coal company due to malpractice, while it is allegedly also being investigated for corruption.

According to highly-placed sources, if the tender is awarded to the Swiss-based company, which is said to have submitted the highest bid, the Ceylon Electricity Board (CEB) as the procurement agency stands to lose a massive sum of money.

Nevertheless, when contacted, a member of the TEC who wished to remain anonymous stressed that when it came to a tender, it was not always the lowest bidder that would be selected but the most responsive bidder. 

The TEC member directed The Sunday Morning to speak to the LCC with regard to the tender details.  

When contacted, LCC Chairman Sumanasekera said the tender had been handled by the CEB and not by the LCC and therefore declined to comment.

The LCC Chairman told The Sunday Morning that there had been a complaint regarding certain issues in relation to the ongoing tender but since it had been handled by the CEB, the LCC had no involvement and thus no access to the tender details.

Sumanasekera also stressed that it was important to finalise the tender urgently as the next coal unloading season was around the corner and that there should be no delays in unloading.

Meanwhile, a senior official at the CEB close to the matter who wished to remain unnamed told The Sunday Morning that since the tender had not been finalised yet, information could not be revealed to the public. 

Nevertheless, sources told The Sunday Morning that an email in the form of a complaint carrying the details of several concerns regarding the tender had been forwarded to top officials of the CEB and LCC and had been copied to several other institutions as well.



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