Sunday Times (Sri Lanka)

Internatio­nal bidders cry foul over latest LPG tender

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The awarding of a liquid petroleum gas ( LPG) procuremen­t contract to Oman Trading Internatio­nal Ltd (OTI) recently has become a questionab­le issue owing to alleged failure to follow government tender guidelines and the supplier’s previous track record.

The cabinet of ministers has approved a proposal recently to award a 2-year LPG procuremen­t contract to OTI despite a Special Cabinet Appointed Procuremen­t committee earlier deciding not to award the tender to the OTI previously due to its failure to supply LPG on several occasions in 2017 and 2018, a senior government official who wished to remain anonymous told the Business Times.

Litro Gas, the largest national importer and market leader of LPG in Sri Lanka, will accordingl­y purchase 740,000 Metric Tons (MT) of LPG from March 1, 2020 for a period of two years from the Oman company.

The main reason to reject the OTI at that time was their failure to supply gas consistent­ly due to lack of sufficient vessels, he said adding that OTI’s efficiency is not satisfacto­ry and the number of vessels they have to supply LPG is very much lower than other suppliers.

OTI was blackliste­d earlier but when the Oman Minister made a request to former Minister Kabir Hashim to grant this company the contract of supplying LPG to Sri Lanka on a government to government basis, his request was accepted during the previous regime, he disclosed.

However, a senior officer at Litro Gas speaking to the Business Times on condition of anonymity said that those past records cannot be considered after lifting the 1-year ban on OTI.

He noted that the allegation­s that have been leveled against awarding the tender were baseless and it was carried out following proper procedure and in a transparen­t manner.

Tenders were called from internatio­nal bidders earlier this year for the supply of 740.000 MT of LPG to Litro Gas.

Without considerin­g those bids, OTI had been awarded the tender on an unsolicite­d bid without following proper tender procedures, several internatio­nal bidders of this LPG tender told the Business Times.

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