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Supreme Court Issues Notices Over Rs. 3.3 Billion Loss in Solar Power Tender Irregularity

February 24, 2025
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Supreme Court Issues Notices Over Rs. 3.3 Billion Loss in Solar Power Tender Irregularity
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The Supreme Court has issued notices to multiple respondents, including Minister of Power and Energy, Engineer Kumara Jayakody, in connection with a Fundamental Rights Petition alleging that irregularities in awarding a solar power plant tender in Siyambalanduwa Athimale have resulted in a loss exceeding Rs. 3 billion to the government.

A Supreme Court bench comprising Justices S. Thurairajah and Sampath B. Abeykoon made this announcement, ordering that notices be dispatched via courier service before February 24, at the petitioner’s expense.

According to the petition, the Ceylon Electricity Board (CEB) had invited tenders for the construction of a 100-megawatt solar power plant. However, instead of awarding the contract to the lowest bidder, the authorities granted it to the highest bidder, causing substantial financial harm to the state.

Senior Advocate Suren Fernando, representing petitioner Milinda Prasanna Madugalle, requested the court to urgently schedule a hearing to verify the petition’s claims, citing the considerable financial implications of the alleged irregularities. He further informed the bench that necessary steps had been taken to notify all respondents and submit relevant documents.

The Supreme Court subsequently issued notices to the respondents, including Minister Kumara Jayakody, the Ceylon Electricity Board, Rividhanavi Private Limited, Lakdanavi Limited, Winscorp Limited, Blue Circle Private Limited, Athimale Plantation Private Limited, Professor K. T. M. Udayanga Hemapala (Secretary, Ministry of Power), and W. M. D. L. Fernando (Cabinet Secretary).

The petition states that the petitioner became aware through media reports on January 21, 2025, that the CEB had awarded the tender to a company that had submitted a bid of US$ 12.2 cents per kilowatt-hour. The petitioner argues that this decision disregarded another company’s lower bid of US$ 8 cents per kilowatt-hour. Furthermore, the petitioner claims that the winning company later agreed to supply electricity at US$ 8 cents per kilowatt-hour, raising concerns over the legitimacy of the tender process.

Additionally, the petition highlights that while the initial supply charges were eventually reduced to 8 US cents per kilowatt-hour, the government committed to covering the cost of transmission facilities for up to ten years. The petitioner contends that transmission facility charges were significantly increased during the tender process, leading to a financial loss of Rs. 3.3 billion. As a result, the public will ultimately bear the financial burden caused by the alleged misconduct of the respondents.

In light of these claims, the petitioner has requested the Supreme Court to declare that his fundamental rights have been violated.

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