“The government is going to purchase electricity from an American Company violating the Electricity Act”
The news published in a weekend newspaper on 15th November 2020 under the above headline is completely false and the true and clear objective of the relevant cabinet paper is,
- To call a comprehensive report inclusive of technical and commercial facts from the American company called M/s. New Fortress Energy which submitted a proposal in 2019 through the American Ambassador to Sri Lanka. As per the proposal on five year plan, unit cost on generation of Liquefied Natural Gas (LNG) is around Rs. 18/- and it is more favourable the present high cost of diesel generation (around Rs. 30.00), and the Ministry as studied this and decided to call the said report,
- To give opportunity for any other investor to submit proposals, only if it is confirmed by a technical evaluation as a suitable proposal ,
- To evaluate all the proposals by a by a Cabinet Appointed Negotiation Committee (CANC) and seek the approval of the Cabinet of Ministers to select the most technically and financially suitable proposal among them.
In addition, the other allegation made in the said was, the same Cabinet Memorandum had sought permission to extend the contract period of the Embilipitiya and Matara “Ace Power” and Sapugaskanda “Asia Power” Fuel Power Plants until 2023, which is due to expire in April 2021.
This news is also directly misleads to the reader. In the relevant Cabinet Memorandum, the Minister directs CEB to obtain the approval of the Public Utilities Commission of Sri Lanka (PUCSL) to extend the contracts with the relevant companies at the request of the Ceylon Electricity Board and in case such approval is obtained requests to instruct the Secretary to the Treasury to appoint a Project Committee for the relevant agreements and a Cabinet Appointed Negotiating Committee to discuss the agreement.
We honestly request you, who are engaged in a more responsible and truthful media mission, to provide the necessary publicity in this regard.