Parliament’s Sectoral Oversight Committee on Infrastructure and Strategic Development on Wednesday ordered a comprehensive assessment of losses caused by 19 shipments of substandard coal supplied to Sri Lanka between January and July, widening the scope of an earlier estimate that put losses from nine shipments at Rs.8.5 billion.
Committee Chairman SJB MP S.M. Marrikkar this week said all 19 shipments received from the same South African supplier during the seven-month period had been found to be substandard. In March, Marrikkar disclosed that losses from nine shipments of substandard coal supplied by the company had amounted to Rs.8.5 billion.
The Committee has now instructed officials from the Public Utilities Commission of Sri Lanka, Lanka Coal Company, National System Operator and Lakvijaya Power Plant to form a committee headed by the Energy Ministry Secretary and prepare a comprehensive report quantifying the total losses.
The assessment is also expected to account for wear and tear caused to the Lakvijaya Power Plant from the use of substandard coal.
The Committee was informed that the South African supplier had been fined $ 36.5 million in penalties for the substandard coal, while an additional $ 611,000 had been invoiced as penalties for delayed deliveries.
Marrikkar also raised concerns over delays in obtaining Cabinet approval to call fresh tenders for coal required from October, with existing stocks expected to be exhausted by mid-September.
He urged the Energy Ministry Secretary to press the Minister to expedite the approval process to avoid delays in securing the next coal requirement.