Jan 19, 2018

Thermal power to LNG power generation project to cause Rs. 23,250 m loss Featured

A higher bidder has been awarded a project to transform thermal power generation into liquid natural gas based production, CEB sources say.

This will cause a Rs. 23,250 million (150 million US dollars) loss to the state.

The prime minister has approved and the project agreement signed with a joint venture by Indian, Japanese and Sri Lankan companies that had placed a 300 million USD bid.

That is pursuant to a MoU signed by him with India last April.

A bid by an Australian company for half that amount had been ignored, according to the sources.

The shares of the joint venture will be distributed as 47.5 per cent by India, 37.5 pc by Japan and 15 pc by the CPC, thereby endangering the independence of the country’s power generation, the sources say.

Furthermore, the production cost will go up from Rs. five per unit to around Rs. 14 per unit.