Tender irregularities delay the emergency power supply projects

Malpractices in Sri Lanka’s power sector tender procedure have become a stumbling block for the implementation of the proposed power projects in the next two years to avoid a power crisis, the Electricity Board ( CEB) Engineers Union alleged.

The Public Utilities Commission of Sri Lanka (PUCSL) recently recommended the power generation plan but the procurement process for the planned power plants has not been expedited by the Ministry of Power and Energy, a member of the union told the Business Times.

However Power and Renewable Energy Ministry Secretary Dr. Suren Batagoda noted that, in comments to the Business Times, these delays were due to a tug- of- war between the PUCSL and engineers participating at the committee meetings on the project proposal evaluation and implementation process.

Inconsistencies and delays were reported on the 300MW Kerawalapitiya liquefied natural gas (LNG) power plant procurement and a multi-mil- lion rupee tender to procure 50 mini diesel generators to prevent immediate power shortages.

“The government may consider a change in the industry structure if the generation plan implementation cannot be efficiently carried out within the current structure,” the PUCSL said in a report.

The PUCSL noted that it is assuming the 122MW Uma Oya hydro plant and the various solar, wind and mini-hydro projects planned for 2018-2020, would be delayed by one year.

In addition the Ministry has decided to add 100 MW of capacity to the national grid to provide an uninterrupted supply of electricity to the people.

The emergency power will be connected to the national grid when a challenging time is encountered, Power and Renewable Energy Ministry sources said.

But the decision to award the tender to procure 50 mini diesel generators to a disqualified bidder has caused an unwarranted delay in the implementation of the emergency power supply programme, these sources said.

The tender called by the CEB for the supply , installation and commissioning of 50 1MW/1.25 MVA containerised package diesel generators, 25 step-up containerised transformer units and 25 containerised diesel fuel tanks in 2016 was recently awarded to Sterling & Wilson of India which was earlier rejected by the Technical Evaluation Committee ( TEC), the CEB Engineers union said.

The TEC has recommended Senok Trade Combine Pvt Ltd as the most responsive and lowest bidder with no deviations from the procurement criteria, a senior member of the union said noting that none of the engineers’ input was taken into consideration.

He added that the Standing Cabinet Appointed Procurement Committee (SCAPC) has overruled this decision and arbitrarily requested the TEC to re-evaluate two bidders (Sterling & Wilson of India and Hyosung Corporation of India) who have been rejected for non-compliance and for making incomplete bids.

An appeal was made to the President and the Prime Minister to re-evaluate bids and select the suitable supplier award the tender to the deserving and most substantially responsive bidder, a dejected company said.