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By Niranjala Ariyawansha

Ceylon Electricity Board Engineers’ Union (CEBEU) has decided to initiate stern trade union action on Thursday (7) against the pressure to push for Liquid Natural Gas (LNG) Power Plants by the Cabinet Committee on Economic Management (CCEM) who they accuse of manipulating the Public Utilities Commission of Sri Lanka (PUCSL) into submission.

CEBEU has also decided to withdraw all their members from the Technical Evaluation Committees starting from 7 September, unless the Least Cost Long Term Generation Expansion Plan (LCLTGEP) compiled by PUCSL is withdrawn.

CEBEU has sent a letter dated 28 August to Minister of Power and Renewable Energy, Ranjith Siyambalapitiya, notifying him about the trade union action.

When inquired by Ceylon Today former CEBEU President Athula Wanniarachchi said that India and Japan have pushed an unsolicited proposal to set up a LNG terminal in Sri Lanka. He pointed out that two 500 MW LNG plants are included into the proposal.

The proposal has mooted the setting up of a company of which majority stakes will belong to Japan and India whereas Sri Lanka will own fewer shares.

“Their main intention is not to invest on a terminal and earn profits out of the terminal business, but to dump the high cost LNG in their hand on unsuspecting Sri Lankans. In order to ensure that there is sufficient demand in Sri Lanka for LNG to dump their high cost, high volume contracts, they are also trying to force LNG power plants into the country,” Wanniarachchi charged.

Explaining further, he said, “If we accept this proposal, this country would run straight into a trap and we will be forced to bear the sins of others and buy LNG at a higher price for generations to come, when LNG is traded very low at the moment. Further, giving terminal operations and LNG procuring to a non-State-owned entity is very dangerous and the energy security of the nation would be at serious risk one day.”

He added that it is clear that forcing LNG plants on CEB is not an isolated incident but a part of a larger conspiracy. World Oil and LNG prices crashed in August 2014. However, as LNG contracts are based mainly on long and medium-term contracts, there are many countries that still hold pre-August 2014 priced LNG contracts and are required to buy LNG at prices that they have signed prior to August 2014.

CEBEU has been at loggerheads with the PUCSL for some time now citing the PUCSL is influenced by outsiders who wish to manipulate the country’s generation mix. In February and April this year, CEBEU wrote two strongly worded lengthy letters to the Commission alleging that PUCSL staff are supporting anti-Coal lobby and are siding with the LNG mafia, for which the PUCSL replied in April denying the allegations.

The fight took a new turn with the PUCSL granting approval to the CEB’s LCLTGEP for 2018-2037 periods on June 2017.

Both CEB and CEBEU had claimed that what the PUCSL had approved is not the plan submitted by CEB for approval but a plan that PUCSL has prepared on their own after removing Coal plants in the CEB plan and forcing LNG plants instead. CEB wrote officially to PUCSL claiming PUCSL had exceeded the powers given to it under the Sri Lanka Electricity ACT by amending the CEB’s recommended plan on their own.

And then CEB wrote to the Attorney General too asking for legal opinion.

However, the PUCSL claims that the generation mix that they had approved is of lower cost than the CEB generation mix. CEBEU strongly denies this claim and had even stated in their letter to the subject Minister that by doing so PUCSL had “surprisingly proved to the world for the first time that LNG fired generating technologies are cheaper than Coal Steam Plants”.

CEBEU now claims that the action by the PUCSL is part of a bigger conspiracy to dump high cost LNG plants on the country.

Continue reading “CT – Warns country heading right into a LNG trap CEBEU declares stern TU action” →

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News First – 18/08/17 Prime time News
LNG Tender: ?? ??????? ?????? ???? ??????? ????????? ????????

https://www.facebook.com/cebengineers/videos/691596554379273/

The awarding of the 300 MW (LNG) Combined Cycle Kerawalapitiya power plant tender is set to drag on further owing to certain disagreements in opening the financial bid of Samsung JV Korea Group without considering bids of seven other firms.

This decision was taken by the Standard Cabinet Appointed Procurement Committee (SCAPC) amidst disagreement of the Technical Evaluation Committee (TEC), a senior official of the Power and Renewable Energy Ministry said. Plans to build the power plant were suspended after detecting certain irregularities in the tender procedure to select the company to construct the plant. The LNG power project has been in the planning stage for the last 10 years. The disqualified bidders’ can make their submissions to the Appeal Board against the SCAPC decision, Secretary to the Ministry Dr. Suren Batagoda told the Business Times.

The current controversial tender under criticism of CEB engineers and energy experts is likely to be referred to the Procurement Appeal process, he opined. He disclosed that he has already submitted his observations to the cabinet stating that all eight bids which passed in commercial evaluation should be re-considered in awarding this tender.

Read More:

Controversial tender haunts Kerawalapitiya power plant

Sunday, August 13, 2017

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Electrical engineers warn about Kerawalapitiya tender; 15 billion loss – Hiru News

The government is looking to work out a permanent solution to the crisis at the Norochcholai coal power plant as the plant continues to suffer more breakdowns.

A Chinese technical team was scheduled to arrive in the country recenly to inspect the plant and rectify some of the issues.

Sulakshana Jayawardena, Director (Development) at the Ministry of Power and Renewable Energy told The Sunday Leader that the technical team will service the coal power plant and carry out maintenance work.

A generator at the Norochcholai coal power plant broke down last month. The third power generator at the power plant that broke down.

The Ministry of Power and Renewable Energy later said there will not be power cuts in the island as a result of the breakdown.

Jayawardena said that the third generator at Norochcholai adds 300 mw of power to the national grid.

Deputy Minister of Power and Energy Ajith Perera compared the Norochcholai coal power plant to that of a disabled child.

The Deputy Minister told The Sunday Leader that the country is heavily dependent on the Norochcholai coal power plant as the water levels at catchment areas are very low.

He said that the government had the burden of having to manage the plant which was commissioned by the former regime.

Dy. Minister Perera said that the government would however rectify the issues at Norochcholai and make it a more effective power station in the country.

“We are doing our best to ensure uninterrupted power supply in the country,” the Deputy Minister added.

Jayawardena said that the recent power outings in the country were not totally related to the Norochcholai breakdown.

He said that the recent trade union action by the Ceylon Petroleum Corporation (CPC) resulted in fuel not reaching private power suppliers.

As a result at least one private power supplier was unable to operate the power station and supply power to the national grid.

In April this year the Norochcholai coal power plant suffered a similar breakdown as the recent one and even then Chinese experts were called in to rectify the issue.

Following the April breakdown, Power and Energy Minister Ranjith Siyambalapitiya visited the Norochcholai coal power plant to inspect the damage caused to one generator.

Meanwhile in October last year, following similar breakdowns, the Public Utilities Commission of Sri Lanka (PUCSL) appointed a high-profiled three member committee to carry out an independent investigation.

Shibly Aziz, Former Attorney General and President’s Counsel had been appointed as the Chairman of the Committee with R. I. Senaratne, Head of the Department of Electrical Engineering, IESL College of Engineering and Professor Kapila Perera, Dean, Faculty of Engineering, University of Moratuwa had been appointed as committee members.

The Investigation Team was tasked to investigate relevant technical and non-technical evidence/information/data that requires to ascertain the causes of the failure, examine the causes for the failure, analyze whether  the failure could have been prevented and make recommendations and advice to prevent similar failures in the future.

Read more:Government Battles Norochcholai Crisis

by Ashanthi Warunasuriya 

Sunday Leader – 2017/08/13

Attempts are being made to sabotage the competitive bidding process to procure a 300 Mega Watt (MW) Combined Cycle Power Plant, the Ceylon Electricity Board Engineers’ Union has claimed, but the ministry has refuted the charge.

Eight bids had been submitted for the plant to be built in Kerawalapitiya. After the technical evaluation process, six had been recommended by the CEB’s Technical Evaluation Committee (TEC) for financial evaluation. However, the union charges that the Standard Cabinet Appointed Procurement Committee (SCAPC), formerly known as the Tender Board, had “arbitrarily decided” that only one bidder was suitable for financial evaluation.

“It is highly suspicious and we assume that this has been done due to some outside influence as SCAPC does not have any technical knowledge to overrule a technical decision recommended by the TEC,” Saumya Kumarawadu, the CEBEU’s President claimed.

According to the CEBEU, the financial bid of the only remaining bidder, a Korean Company, was opened on Friday by the Ministry/CEB Bid Opening Committee in the presence of the other unsuccessful bidders. It was, however, found that the bidder had not submitted a written and signed financial bid but only a soft copy in a flash drive. Without filling the prices in the specified sheet along with a signature and seal, the bid is considered invalid. On the request of the bidder the Bid Opening Committee had tried to open the soft copy but this too had failed due to a technical issue.

The CEBEU suspects that plans are now being drafted to call fresh bids to procure the power plant and will require another 9-12 months resulting in power cuts in 2019, unless the Government purchases costly emergency power, Mr Manawadu stated.
The CEBEU’s stand, according to its President, is that all five remaining bids which were “legitimately recommended” by the TEC should be opened and the tender awarded to the bidder who has quoted the lowest price.

Power and Renewable Energy Ministry secretary Dr Suren Batagoda acknowledged that the selected bidder had failed to submit a written and signed financial bid. He added the bidder has claimed that the reason for the lapse is that they had been “confused by instructions in the tender document.”

He defended the SCAPC’s initial decision to select one out of six bidders, stating that the TEC, in its recommendations, had noted that there were technical deficiencies in the bids submitted by the other five bidders but to give them a period of time to correct the deficiencies.

Read More: New power plant: CEB union claims tender irregularity, but ministry refutes charge

Sunday, August 13, 2017

By Niranjala Ariyawansha

Secretary to the Ministry of Power and Renewable Energy Dr. Suren Batagoda said yesterday that, it has been decided by SCAPC (Standard Cabinet Appointed Procurement Committee) to open the financial biddings of only one company in relation to the 300MW Liquid Natural Gas (LNG) Power Plant scheduled to be constructed at Kerawalapitiya, which has created much controversy.

However, he emphasized that the SCAPC decision is not the final decision and the remaining seven bidders can present themselves at an Appeal Board against it.

He made these comments in response to an inquiry we made as to whether a decision has been made to open the financial biddings of only one company, in an illegal manner, by SCAPC without taking into consideration the recommendations of the Technical Evaluation Committee (TEC). Even prior to this, the SCAPC had decided to award this tender sans any competition, in an illegal manner to only one company. The Ceylon Electricity Board Engineers’ Union (CEBEU) had expressed their strong opposition to that decision.

A fundamental rights petition filed in Court that this tender is illegal, is already being heard.

With media reports that were published that there was corruption behind awarding of the tender, the Minister of Power and Renewable Energy Ranjith Siyambalapitiya suspended the opening of financial biddings.

Read More:  Kerawalapitiya LNG Plant Appeals Board will consider bid revisions

Ceylon today 2017-08-10

Despite the Government Ministers and Prime Minister Ranil Wickremesinghe advising the Tender Board of the Kerawalapitiya LNG power plant, the Ministry of Power and Renewable Energy has decided to go ahead with its own……biased decision to reject five of the six qualified bidders, top officials said.

A certain official in the Power and Renewable Energy Ministry has misled the Cabinet saying only the Korean company has given a proposal for LNG.

Despite the Technical Evaluation Committee (TEC) naming six bidders as suitably qualified, the Tender Board overruled the TEC recommendation for unknown reasons.

Now the SCAPC, (Standard Cabinet Appointed Procurement Committee) has for the second time taken a secret decision and has informed Samsung of Korea to be present for the financial bid opening this Friday, where strangely only its bid is to be opened.
Ceylon Today reliably learns that the other five bidders are being kept in the dark about this development.

It is learnt that the Ceylon Electricity Board (CEB) also has been kept in the dark. The CEB representative on the Tender Board has requested that all bids be opened.
(NA)

ReadMore:Controversy surrounds LNG tender

Ceylon Today 2017-08-09

By Dr. Tilak Siyambalapitiya

So, here we go again. There is a new team leading the Board of Investment. A new PPP agency is in the making, whatever PPP means. PUCSL, the electricity industry regulator, has recently approved an all-diesel power generation plan (name board says ‘gas’ but to the delight of many, they will run on diesel). The oil refinery is ageing and falling apart. While the entire world is drawing comfort in their energy business with low energy prices, Sri Lanka is shivering, moving dangerously towards full-scale power blackouts, shortages and price increases. Why?

To the Board of Investment

Your previous Chairman said in early 2015 that he has received four “proposals” to build liquefied natural gas (LNG) terminals, and that all four will be built. Note: The whole of India has only three terminals; the BOI wants Sri Lanka to have four terminals.

Obviously, the BOI Chairman did not know how much one cost, that the market is only for Sri Lanka (a gas terminal is not a garment factory, to manufacture and export), and that each one costs about $ 700 million. So he accepted “proposals” from four parties, boasted about it and did not allow a systematic process to be followed in procurement. Finally, two and a half years later, all four terminals, their proponents, local agents and the Chairman himself are gone with the wind. Sri Lanka is back to square one.

Adding insult to injury, the Government reportedly issued letters of intent to two countries to build gas terminals. What a joke? Governments do not issue letters of intent to another government. They are not worth the paper on which they are written on. Letters of intent are commercially binding documents, issued after a serious procurement process. You do not issue a letter of intent on an undefined project. Such flimsy documents in the bureaucratic jargon are called ‘non-binding MOUs’. So with a flimsy MoU on a gas terminal, Sri Lanka is again back to square one……

Read more: http://www.ft.lk/article/632246/An-open-letter-to-BOI–PPP-on-petroleum–gas-and-electricity-industry

Daily FT  31 July 2017

The Engineers’ Union of Ceylon Electricity Board (CEBEU) has called for the appointment of fresh professionals to the Public Utilities Commission of Sri Lanka (PUCSL) since there has been a breakdown in trust among the membership.

The CEBEU stated that they had rejected the request of the PUCSL to implement a Least Cost Long Term Generation Expansion Plan (LCLTGEP) prepared by the Commission.

In a letter to the Minister of Power and Renewable Energy Ranjith Siyambalapitiya on Thursday, 27 July the CEBEU has demanded the urgent intervention of the minister to get the CEB, and the LCLTGEP to facilitate the unhindered procurement of future power plants. The Union also called on the minister to intervene to ensure that the PUCSL is staffed by people of proven caliber who will function objectively and in a professional manner. The Union says they had no other option but to resort to trade union action to safeguard their membership and the sector from such individuals….

Ceylon Today – 2017-07-31

Read More: http://www.ceylontoday.lk/print20170401CT20170630.php?id=26621

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The Ceylon Electricity board Engineers union objects the proposal put forward by the Public Utilities commission regarding long term power generation.Chairman of the union Saumya Kumarawadu states that the proposal approved by the Public utilities commission is not the proposal submitted by the Electricity board.Public Utilities Commission of Sri Lanka has granted approval to the alternate Least Cost Long Term Generation Expansion Plan 2018- 2037 of the Ceylon Electricity Board’s , with the view of ensuring energy security and continuous supply of electricity in Sri Lanka.Sri Lanka expects a 5.0% energy demand growth and a 4.5% peak demand growth rate for the period 2018-2037

READ MORE:

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Engineers object Public Utilities commission proposal on power generation