LAUGFS terminal issue: Wega says ‘no’
The country’s topmost officials are scrambling to sort out the issue on LAUGFS LPG import and export terminal, but LAUGFS Holdings Chairman W.H.K. Wegapitiya is adamant that his terms must be met.
Top ministers told the Business Times that this issue is almost sorted, but Mr. Wegapitiya says that his company has to be treated fairly. He had met with President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and all the officials downwards but the issue is still alive, he told the Business Times.
Laugfs Terminal Ltd (LTL) was constructing a US$ 80 million LPG terminal in Hambantota Port when it was stopped by the Sri Lanka Port Authority (SLPA).
Officials said that according to the agreement between SLPA and China Merchants Port Holdings Co, the majority stakeholders in the Hambanthota Port, there’s a condition precedence that requires the SLPA to transfer, novate or assign agreements between LAUGFS and SLPA to China Merchants Port Holdings Company (CMPHC) and that LAUGFS has to pay CMPHC a fee to operate the pipeline. They added that they are negotiating with CMPHC for the minimum cost structure. But Mr. Wegapitiya is resolute that he won’t pay.
“The government wants me to be flexible and accommodative, so that they can cover their mistakes,” a disappointed Mr. Wegapitiya said.
Mr. Wegapitiya insisted that he wants to peruse the agreement between SLPA and CMPHC so that he can understand the agreement, but SLPA has declined to show the agreement.
Last December the formal handover of the strategic port of Hambantota to CMPHC which will take control of the facility on a 99-year lease was completed. “The way this port’s major shareholders are acting, this most strategic port in South East Asia won’t attract any investors,” Mr. Wegapitiya stressed.