• $ 15 m performance bond retained 
• Experts say no impact on machinery  
• No quality issues with emergency procurements 

The Energy Ministry stated yesterday (19) that fines amounting to nearly US$ 27 million have been recovered in connection with coal supplies that failed to generate the required energy output, and that a further US$ 15 million performance bond is also being retained.

Speaking to the media, Deputy subject Minister Arkam Ilyas said: "The coal in question does not generate the level of energy output that we require. However, we are continuing to use those coal stocks and they have not been removed."

He also said the fines have already been recovered in relation to the issue. "Approximately US$ 27 million has been recovered as fines to date, and a further US$ 15 million remains as a performance bond."

In response to a query as to whether the use of the questionable coal would cause any damages to the machinery, he said: "The issue is that the expected energy output is not being received from the coal. We consulted experts on this and they informed us that it is not causing damage to the machinery."

Commenting on the coal purchased under the emergency procurement process, Energy Minister Anura Karunathilaka said that two coal shipments purchased under emergency procurement procedures have already been used, and that no issues have been reported with them. "The required capacity is being received during electricity generation."

The coal procurement process has come under intense scrutiny in recent months following allegations regarding the importation of substandard coal for the Lakvijaya Power Plant in Norochcholai. Several parties including the Opposition and trade unions have been claiming that lower-grade coal could affect electricity generation efficiency and increase operational costs.