News
Russian firm picked to provide coal to Lakvijaya; further approval sought
View(s):By Niranjala Ariyawansha
The Technical Evaluation Committee (TEC) appointed to study the bids to supply 4.5 Metric Tonnes (MT) of coal for the Lakvijaya coal power plant in Norochcholai till 2025 has recommended that the tender be awarded to Russia’s Suek AG/Black Sand Commodity.
In terms of the US$ 900 million deal, the company will be supplying coal to the power plant till 2025 . The Sunday Times learns that Suek AG/Black Sand Commodity has come forward to supply coal at USD 328.22 per metric tonne (including freight charges) on a six-month credit facility.
The nine-member TEC’s recommendation is to be submitted to the Finance Ministry next week for its observations.
Along with the ministry’s observations, the recommendation is to be forwarded to the Cabinet on August 29 for approval by the Standard Cabinet Appointed Procurement Committee, Lanka Coal Company Chairman Dr. Jagath Perera told the Sunday Times.
Dr Perera described the six-month credit facility as a big relief as otherwise, the country would have been facing power cuts lasting up to eight hours from January to March over the next few years.
The Lakvijaya power plant currently has coal stocks to last until the second week of October. However, two vessels carrying coal are due at the Puttalam jetty on September 1 and 5 and these will be sufficient for two more weeks, according to Lanka Coal Company.
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