COLOMBO (News 1st); The Committee on Public Enterprises (COPE) recommended investigating the cancellation of the gas tender given to Siam Gas Company Limited and opting to purchase gas at a higher price.COPE chaired by (Prof) Charitha Herath recommended that an investigation be conducted through the Auditor General’s Department on the cancellation of the Term Tender, which had been approved by the Cabinet to buy gas from Siam Gas at USD 96 per metric ton and opting to buy 100,000 MT of gas for USD 129 per metric ton from an Oman company.This recommendation was given recently (05) when Litro Gas Lanka Ltd, Litro Gas Terminal Lanka (Private) Limited, and Sri Lanka Insurance Corporation were summoned before COPE to implement the orders given by the previous Committee on Public Enterprises and to discuss the current performance.It was disclosed that since the Term tender for the purchase of gas ended last February, tenders were invited for 2,80,000 MT of gas and three gas suppliers have submitted bids accordingly.
Siam gas Company has submitted the lowest price as USD 96 per metric ton and accordingly, the Cabinet has approved the award of the tender.The Litro officials disclosed that gas could not be obtained from Siam gas Company due to the economic crisis as banks in Sri Lanka were unable to submit the Stand by Letter of Credit (SBLC) to Litro as per the conditions announced during the bidding process.They further said that despite discussions with the concerned company in this regard, the company expressed its unwillingness to supply gas without a Stand by Letter of Credit (SBLC) as per the conditions presented during the tender invitation.Due to this delay, as a temporary solution, Siam gas Company itself has negotiated
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