Chinese firm gets major oil deal in Mattala, Hambantota

A Chinese firm has won the award to supply fuel to the international airport in Mattala and the harbour at Hambantota for the pre- commissioning of a bunkering facility and tank farm.

The winner, China Hanqui Contracting & Engineering Corporation, has just completed work on the project in Hambantota. The fuel requirements are for the pre- commissioning and testing of the facility before being handed over to the Sri Lanka Ports Authority (SLPA).

The move follows a recommendation to the Cabinet by President Mahinda Rajapaksa in his capacity as Minister of Ports and Highways. It was only last Monday that he declared open the Mattala Rajapaksa International Airport.

The Cabinet decided to award the project for the Supply of Gas Oil ( Mar- ine Diesel Oil) and Jet A 1 Oil for pre- commissioning of the Bunkering Facility and Tank Farm. The total negotiated bid price for this would be US$ 12,137,992 ( over Rs. 1.5 billion). The amount is without taxes and duties.

President Rajapaksa has told his ministers that as per approval of the Cabinet, the SCAPC ( Special Cabinet Appointed Procurement Committee) called quotations on- ly from the Chinese firm in question. Hence he pointed out that no action was necessary to follow procedures with the Procurement Appeal Board (PAB).The Cabinet has also given approval to call for “technical and financial proposals” from the Chinese firm to supply the minimum requirement of Gas Oil and Jet Oil for pre-commissioning on returnable basis without the left over stock.