West Coast Power Ltd., disputes the report issued by “Verite Research”

West Coast Power Ltd (WCPL), a leading power generation company that implemented Kerawalapitya plant, disputed reports by the organization called ‘Verite Research’ challenging the shareholding structure of the company, it is learnt.

The company has written to Finance Ministry Secretary Dr. R.H.S. Samaratunga in this regard. The company is now seeking legal advice regarding action that it could take against this organization called Verite Research.

A large number of present and past senior officials of Ministry of Finance have been involved in structuring the WCPL transaction. The research report is titled “A Case Study on Public Sector Loss Through Partnership Structures in Power Generation Contracts” however studies only one structure, i.e.

The company believes these aspersions cast on the officials of Ministry of Finance by this report will be seriously taken by the ministry. Since the ministry acted as a direct representative of WCPL on behalf of Ministry of Finance

Kerawalapitiya Power Project, owned by WCPL and states that the “fortunes of GOSL were

compromised” in the structuring of the transaction.

The company believes these aspersions cast on the officials of Ministry of Finance by this report will be seriously taken by the ministry. Since the ministry acted as a direct representative of WCPL on behalf of Ministry of Finance.

WCPL has obtained the copy of the research report circulated to the media organisations and having studied it carefully has found large number of errors, misunderstandings, deliberate lies and very poor research judgement on the part of those who have written it.

WCPL therefore think it is of utmost importance to clarify the actual position of this transaction and point out the mistakes contained in a detailed report to

According to a report compiled by the company, here was a critical power shortage forecast to occur in 2008/2009 and the Government decided to implement the proposed 300MW Kerawalapitiya Project on a fast track basis

Ministry of Finance, so that you can deal with the persons who are responsible for this report within and without the Ministry.

According to a report compiled by the company, here was a critical power shortage forecast to occur in 2008/2009 and the Government decided to implement the proposed 300MW Kerawalapitiya Project on a fast track basis.

Ministry of Power & Energy (MOPE) on January 10, 2006 obtained approval of the Cabinet to instruct Lakdhanavi Ltd to submit a proposal to construct 300MW Combined Cycle Power Plant at Kerawalapitiya on Turn Key basis. (Lakdhanavi Ltd is 82% held by LTL Holdings (pvt) Ltd (LTL). LTL is 63% owned by CEB.) By April 12, 2006 Lakdhanavi submitted its Proposal.

The ministry also received proposals by M/s China National Aero-technology Import & Export Corporation (CATIC) and Mitsubishi Corporation of Japan.

On 17th April 2006 Cabinet decided to appoint a Cabinet Appointed Negotiation Committee (CANC) to select the most suitable offer out of the above. Project Committee (PC) also was appointed to evaluate the proposals.

WCPL therefore think it is of utmost importance to clarify the actual position of this transaction

On June 14, 2006, Cabinet requested MOPE to obtain required funds for the Project from multilateral or bilateral lending agencies through Department of External Resources to build this power plant on DBT basis.