CABINET COMMITTEE TO EXAMINE LNG DEAL

Cabinet approval was obtained to award the contract to Golden Concord Holdings (GCL), which is an international energy conglomerate, to handle the power project

The Cabinet is reported to have decided yesterday to appoint a committee comprising ministers and officials to look into allegations about irregularities in the award the construction of the LNG (Liquefied Natural Gas) power project to a Chinese consortium.

Cabinet approval had been previously obtained to award the contract to Golden Concord Holdings (GCL), an international energy conglomerate, to handle the power project. It is one of the key power producing companies in China.

However, the transaction was mired in controversy in the wake of Sri Lanka’s Lakdhanavi which made a lower bid for the project being denied the tender.

Megapolis and Western Development Minister Patali Champika Ranawaka made his observations on this project at the Cabinet meeting yesterday while Development Strategies and International Trade Minister Malik Samarawickrama had also expressed his views.

The committee comprises Ministers Harsha de Silva, Eran Wickramaratne, Patali Champika Ranawaka, Malik Samarawickrama and the relevant ministry secretaries.the power plant is expected to generate 300 megawatts of electricity.

However, the transaction was mired in controversy in the wake of Sri Lanka’s Lakdhanavi which made a lower bid for the project being denied the tender