ECONOMYNEXT – A tender for a 50 MegaWatt wind power plant by state-run Ceylon Electricity Board has been blocked to prevent sharply lower power purchase prices from competitive bidding being revealed to the public, opposition legislator Kabir Hashim charged in parliament.
A technical evaluation of three companies which had submitted bids had been completed according to information coming to him, Hashim told parliament Wednesday.
“The financial bids were due to be opened on May 17 based on information we are receiving,” Hashim said.
“But due to pressure from certain officials we are learning that there is an attempt to cancel the financial bid. I am asking why the bid was not opened on May 17.
“We learn that the Sustainable Energy Authority Chairman and officials have engaged in a big operation to stop this. I do not know who these people are representing.”
“This is something that is required for the country. We believe the wind power unit could be purchased at a price below 6.0 cents t under competitive tender.
“This tender has been blocked to stop this. So, blocking this is big problem.”
Hashim said he was demanding an answer.
“I do not know whether some corrupt officials are connected to some companies and acting on behalf of these companies (kade yanawader danney ne). I am asking the chairman of the Committee on Public Finance, Harsha de Silva, to summon the officials and ask them to open the bids.”
Hashim said he had urged Sri Lanka authorities in parliament itself on earlier occasions not to agree on a power purchase price for a 484MW plant by India’s Adani group which came without tender until competitive bids for the smaller Mannar plant were opened.
Related Sri Lanka to buy wind power from Adani for 8.26 US cents
The energy ministry said Adani would be paid 8.26 cents per unit for its Mannar and Pooneryn plant project for 484 MegaWatts.
India’s Adani project has come as a government-to-government project, by passing tender, officials said.
CEB’s own plant in Mannar, built before an economic crisis with Asian Development Bank funds, was estimated to have a levelized cost of only 4.2 US cents over its lifetime.
But at commercial rates of borrowing, a profitable project could be run at around 6.0 US cents, according to industry analysts.
Mannar in particular is an area with high winds.
The CEB’s old wind farm with a shorter height has experienced an actual plant factor of 44 percent last year, according to sources with knowledge of the matter. (Colombo/May22/2024)