Coalition Leaders to meet PM, likely to discuss Kerawalapitiya deal

Coalition Leaders to meet PM, likely to discuss Kerawalapitiya deal

Coalition Leaders to meet PM, likely to discuss Kerawalapitiya deal

Written by Zulfick Farzan

22 Sep, 2021 | 10:48 am

COLOMBO (News 1st); Coalition Leaders are expected to have a sit-down with Prime Minister Mahinda Rajapaksa on Wednesday (22) afternoon.

It is reported that the Coalition Leaders have been informed to be present at the Prime Minister’s Chamber in Parliament at 12 noon for this meeting.

Reports suggest that the controversy surrounding the Kerawalapitiya LNG plant.

On Tuesday (21), Leaders of political parties in the coalition government held an emergency meeting at the official residence of Former President Maithripala Sirisena.

General Secretary of the Sri Lanka Freedom Party Dayasiri Jayasekera said the discussion was based on the controversy surrounding the transfer of 40 percent of shares of the Kerawalapitiya thermal power plant to a US firm.

11 coalition parties including those led by Wimal Weerawansa, Udaya Gammanpila, and Vasudeva Nanayakkara met on Monday (20) as well to discuss the same matter.

In early July 2021, New Fortress Energy Inc. announced that it has signed a Framework Agreement with the Government of Sri Lanka to construct a new offshore liquefied natural gas (LNG) receiving, storage, and regasification terminal.

The Terminal will be located off the coast of Colombo to supply gas to the country’s power plants, primarily located in the Kerawalapitiya Power Complex.

The Kerawalapitiya Power Complex consists of 300 MW in operation today and is ultimately expected to grow to over 1,000 MW by 2025.

As part of the Agreement, New Fortress will supply natural gas to the existing 300 MW Yugadanavi Power Plant and is negotiating the purchase of the Government’s 40% stake in the company that owns the power plant.

This power plant is currently under a long-term power purchase agreement (PPA) to provide electricity to the national grid that extends through 2035. The plant consists of General Electric turbines and was configured to run on natural gas in a combined cycle.

JVP Leader Anura Kumara Dissanayake claimed that the Government had signed an agreement with US-based energy company New Fortress Energy Inc. past midnight on Friday (17), transferring the Treasury’s 40% stake in the Yugadanavi Power Station in Kerawalapitiya to the company.

He referred to this as the ‘Midnight Deal’ as it was signed after midnight on the 17th prior to the President leaving for the United States of America.

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