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Sapugaskanda modernisation: CPC goes ahead despite objections
View(s):By Damith Wickremasekara
The Ceylon Petroleum Corporation is going ahead with its call for bids to modernise its Sapugaskanda refinery, ignoring the Cabinet Committee on Economic Management recommendation that the project be held back until an attractive investment is found.
Accordingly, the CPC has received 28 bids from international companies, including companies from India, the UAE, Iran, Singapore, the United States, Italy and China. Petroleum Resources Minister Chandima Weerakkody said the project had to be expedited due to the urgent need to modernise the refinery and ensure ‘energy security’.
The Economic Committee headed by Prime Minister Ranil Wickremesinghe had wanted two separate committees to study the proposal for the modernisation of the refinery. One of the committees approved the proposal while the other is yet to submit its proposal regarding the possibility of attracting private partnership.
Finance Minister Ravi Karunanayake earlier said the Government was looking at other proposals to get better investors for the project.
Mr. Weerakkody said that after an evaluation of the Expression of Interests, a report would be submitted to the Cabinet. Under the modernisation plan, the number of barrels refined each day is to be increased from 50,000 barrels to 100,000, thereby reducing the import of refined fuel.