The Cabinet has approved the emergency procurement of coal for the Lakvijaya Power Plant to prevent a potential energy crisis in the coming months, a senior government source said.
The decision follows the failure of quality tests on coal stocks imported from South Africa, raising concerns over electricity supply if adequate coal stocks are not secured before the onset of the monsoon season in May, when unloading operations become difficult.
“The Cabinet has granted approval for emergency purchases if the need arises; otherwise, there is a risk of an energy crisis,” the official stated.
Alongside the emergency procurement, the government has also decided to call a term tender to ensure the long-term continuity of coal supplies.
Quality tests conducted on samples from a vessel carrying 60,000 metric tonnes of South African coal failed, placing authorities in a difficult position. Of the total 23 coal shipments, nine are still en route. Following the failure of the first shipment’s quality test, the remaining shipments are also being subjected to similar testing.
The government has already imposed a penalty of USD 2 million on the first shipment, while quality testing of the second shipment is currently underway.
Meanwhile, the coal procurement tender itself has come under scrutiny amid allegations of corruption. It has been alleged that the tender conditions were modified to favor an Indian company responsible for importing the South African coal.
There are also claims that the tender timeline was shortened, with the validity period reportedly reduced from the standard 42 days to just 21 days. The opposition has called for all related documents to be tabled in Parliament.
