The Hon. Kumara Jayakody - Minister of Energy

¶ 01 Hon. Speaker, the Ceylon Electricity Board (CEB) opened on 09 May 2024 the tenders called last year for the proposed 50 MW wind power plant in Mannar. Five bids were received.

¶ 02 At the technical evaluation stage, two bids were rejected. Among them, the bid bond submitted by Hayleys Fentons Limited was found non‑compliant with bid conditions and the bid was removed. The financial proposals of the remaining three were opened:

¶ 03 1. WindForce PLC quoted US cents 4.88 per kWh. 2. Consortium of Vidullanka, Universal Energy Corporation and Squire Mech Engineering (Pvt.) Ltd quoted US cents 4.9823 per kWh. 3. Lakdhanavi quoted US cents 5.90 per kWh.

¶ 04 Accordingly, the Tender Committee recommended award to WindForce PLC as the lowest bidder.

¶ 05 However, Hayleys Fentons Limited appealed to the Procurement Appeal Board (PAB) on 02 August 2024 under the Government’s Procurement Guidelines. On 15 August 2024, the PAB ruled that the reason given for not opening the appellant’s financial bid at technical evaluation was not fair and directed that Hayleys Fentons’ financial bid be opened. In compliance, Hayleys Fentons’ financial bid was opened; they had quoted US cents 4.65 per kWh.

¶ 06 Meanwhile, WindForce, which had been in line for award, filed a court case but later withdrew it, informing us, “As you are aware, believing in the integrity of the new Government, we decide to withdraw from the court case of 50 MW Mannar Wind Farm Facility tender.” This confirms their withdrawal; it is not a “deal”.

¶ 07 Hon. Deputy Speaker, the Cabinet Appointed Negotiating Committee (CANC) approved awarding the tender to Hayleys Fentons Limited as the lowest price bidder. Compared to the earlier recommendation, this results in a reduction of US cents 0.23 per kWh. Over the 20‑year contract term, this saves approximately USD 2.5 billion to the country. Cabinet has granted approval for the contract award. The CEB is proceeding with the next steps, including securing bonds and other formalities. There is no undue delay.

¶ 08 Regarding claims made yesterday citing selective extracts, our Cabinet Paper in English contained the background and recommendations. Selectively quoting technical committee notes without context misleads the public. This procurement began before our Government, and we are concluding it properly under the Guidelines.