LAKDHANAVI AGAINST CEB SIGNING PPA PENDING COURT DECISION

Lakdhanavi, the local power manufacturing company which has made a legal bid to win the tender for the LNG power plant tender in Kerawalapitiya, is up in arms against the move to sign a Power Purchase Agreement (PPA) between Gcl-china and the Public Utilities Commission (PUC).

Lakdhanavi which is a local company, lost the tender to Gcl-china to establish the power plant. However, the company has challenged the Cabinet decision in court. The case is currently going on.

Deputy Chief Executive Officer (Finance) of Lakdhanavi Ravindra Pitigalage told Daily Mirror the Ceylon Electricity Board (CEB) was trying to obtain approval from the Public Utilities Commission of Sri Lanka (PUCSL) for the PPA.

CEB is expected to seek approval from PUCSL by May 17 and PPA to be signed before May 21, thus making

Lakdhanavi which is a local company, lost the tender to Gcl-china to establish the power plant. However, the company has challenged the Cabinet decision in court. The case is currently going on

any reversal through litigation more difficult.

He said the case would be taken up the next hearing on May 21, and the move to sign the PPA before that could not be accepted. For that purpose, he said negotiations with Gcl-china started on May 6.

The approval for Gcl-china was granted in March 26, by the Cabinet. It was ratified by the Cabinet on April 4.

However, on April 5, in the hearing of FR case filed by Lakdhanavi and two more cases filed by members of the public, the lawyer for PUCSL said it had not given any approval for awarding the project to Gclchina as required by the National Electricity Act. Petitions could not be supported due to lack of time and Petitioners’ lawyers requested the status of the matter not be changed until the new date for hearing after the court vacation on May 21.

However, Power and Energy Ministry Secretary Dr. Suren Batagoda called a meeting on April 4, and wrote to CEB on April 10 to start negotiations with Gcl-china.