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Sri Lanka: Wind Power Deal with Adani Contravenes IMF Guidelines

The current administration seems to be moving in the opposite direction, bypassing the tender process altogether.

1 min read
[ Photo: Nimalsiri Edirisinghe/ Daily Mirror, LK]

Murtaza Jafferjee, Chairman of the Advocata Institute, has raised serious questions regarding the recent energy deal struck between the Ceylon Electricity Board (CEB) and Adani, an Indian multinational conglomerate.

The deal, which involves CEB purchasing renewable energy from Adani at a staggering rate of $0.826 per unit, has sparked controversy, especially considering that the prevailing market rate stands at under $0.06. Jafferjee has pointed out that such a substantial variance from the market rate raises concerns about transparency and potential corruption.

Adding fuel to the fire, a recent governance report by the International Monetary Fund (IMF) emphasized the importance of open tenders in government procurement to prevent corruption. However, the current administration seems to be moving in the opposite direction, bypassing the tender process altogether.

Just two days ago, the cabinet announced its intention to allocate Adani a substantial 400 megawatts of wind power at a rate of 8.3 US cents, further raising eyebrows in the energy sector. This decision, according to Jafferjee, flies in the face of principles of fair competition and fiscal responsibility advocated by the IMF.

The lack of a competitive tender process has drawn criticism from various quarters, with concerns about monopolistic practices and inflated pricing dominating the discourse. Jafferjee highlighted the importance of driving down electricity prices through competition, citing recent tenders where prices as low as 6 cents per unit were achieved.

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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