Sri Lanka will launch new tenders to buy coal for energy generation because the original awardee refused to proceed after a controversy.
Minister Wijesekera stated the company that won the bid is not willing to implement it. Now we must re-bid. The corporation declined because of public opinion, proposals, and allegations.
Next Thursday, he’ll seek Cabinet approval to call new bids.
Sri Lanka had hoped to obtain coal by October 2022, but the acquisition will be marketed again.
He claimed all suppliers can reply.
Sri Lanka originally granted the tender to a UAE-based business to provide 4.5 million tonnes of coal from Vanino Port, Russia.
It was expected to supply coal for 295.22 USD/tonne plus 33 USD/tonne for freight.
Deal was for 2022-2023, 2023-2024, and 2024-2025.
The company gave six months credit. Minister Wijesekera defended the deal, claiming the supplier submitted the lowest bid.
On July 21, he told parliament, “we called for bids.” “We closed on Aug. 10.” Two firms bid. One company offered a tonne for $328.
CMEC-Browns offered coal at $554/tonne. The company asked for 50% USD and 50% rupees or yuan. Another bid was $526/tonne.
After the bid ended, the party offered coal for $285-$290, he added.
Sri Lanka’s electricity regulator and engineers warned of protracted power disruptions without coal.