A Fundamental Rights petition filed by Ven. Dr Omalpe Sobhitha Thera challenging the decision of the Cabinet of Ministers to award the coal tender to the Black Sand Commodities Company was today withdrawn following the government’s decision to cancel the questionable tender for the procurement of coal to the Lakvijaya Coal Power Plant.
Omalpe Sobhitha Thera filed this petition seeking an order staying the purported award made to a company incorporated in the United Arab Emirates (UAE) for the procurement of 4.5 million MTs of coal for the Lakvijaya Power Plant.
President’s Counsel Sanjeewa Jayawardena, appearing for Sobhitha Thera, submitted to the court that it has come to the knowledge of his client from the public domain that a company named Black Sands Commodities of Dubai was wrongfully awarded the questionable coal tender for the Lakvijaya Coal Plant.
However, the Attorney General’s Department informed the court that the Cabinet of Ministers had cancelled the tender and further decided to call for fresh tenders for the procurement of coal for the Lakvijaya Coal Plant.
Taking into account the new circumstances, Mr. Jayawardena informed the court that there was no further requirement for the petitioner to pursue the petition and sought the court’s permission to withdraw the application. Taking into consideration the facts, Chief Justice Jayantha Jayasuriya and Justice L.T.B. Dehideniya decided to terminate the case proceedings in the petition.
The petitioner challenged the decision of the Special Standing Cabinet Appointed Procurement Committee to award the coal tender to the Black Sand Commodities Company and the subsequent approval issued by the Cabinet of Ministers.
Sobhitha Thera maintained that the price per MT tonne of coal for which the tender has been awarded to the Black Sand Commodities Company is exorbitantly high, vis-à-vis the current Russian prices, thus giving and affording an unjustifiably, unfathomable, and indeed, unconscionable profit margin to the above company. The petitioner states that Black Sand Commodities Company is not registered with the Lanka Coal Company (Pvt) Ltd. as a supplier of coal.
The petitioner further stated that the tender in question is for the procurement of 4.5 million MTs of coal, to be supplied during the span of three years, commencing from October 2022 to April 2025.
Sobhitha Thera said the Black Sand Commodities Company had been selected to supply coal at a FOB base rate of USD 295.22 per ton, which is clearly well above the market rates that other countries have imported coal at Russian prices in the month of July 2022. Based on the above prices, there is a difference of approximately USD 115 to USD 155 per tonne of coal.
