2026-02-20 / Adjournment Motion: Coal procurement for Lakvijaya Power Plant at Norochcholai (Part 2) 2026-02-20
Minister Pannilage concluded his remarks by defending the current government's coal procurement process, asserting it followed national tender procedures with over ten competing firms at competitive prices, in contrast to previous administrations which COPE found had bypassed valid tender procedures. He cited specific historical instances of losses attributable to procurement failures — including a 24-day plant shutdown in 2011 costing an estimated Rs. 3,500 million and losses of Rs. 12,500 million in 2014–2015 — to challenge critics' credibility. The Minister outlined the government's broader energy strategy, targeting 70% renewable generation through expanded solar and wind capacity, given hydropower's diminishing headroom, with the stated goal of achieving energy security and avoiding future crises.
I will conclude.
COPE revealed that no valid tender procedure had been followed for coal procurement. Those who caused losses by acting arbitrarily without tenders are the ones speaking today. We, following the national procurement procedures with more than ten competing firms at competitive prices, have carried out procurement properly. In 2011, due to failure to supply on time, the plant was shut for 24 days from September to October, causing losses estimated at Rs. 3,500 million. From August to September 2015, generation could not be maintained properly. In 2014–2015, due to improper supply, the loss to the State was estimated at Rs. 12,500 million. So where did those “profits” go then?
Our vision in the energy sector is broader: we are working towards energy security, targeting 70% renewable generation. We will not rely on coal alone; we are expanding solar and wind. Hydropower is nearing its limit; therefore we are rapidly adding wind and implementing a major solar program. Through this, we will ensure no crises arise and deliver results to the people. Thank you.