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Thursday, 23 July 09
SRI LANKA CALLS FOR COAL SUPPLY BIDS


Daily Mirro reported that, In a move to install the country’s first coal power plant, Sri Lanka has invited bids to supply 2.4 million metric tomes of coal. The power plant for which the coal is intended is currently under construction by the Ceylon Electricity Board (CEB); it is hoped that operations will commence next year. The Chairman of the Cabinet-appointed procurement committee, on behalf of the Lanka Coal Company Limited,  stated in an advertisement that bids are being invited for the purchase of coal on a ‘Port of Landing’ or FOBT basis. However, the option of supplying coal from a transshipment point or jetty (on a CIF basis) is also available, according to the advertisement.

The proposed coal power plant will be based in Puttalam and will add 900 mega watts (MW) to the national grid. The plant will be developed in two stages; stage one with an output of 300 MW by 2010, and stage two generating a further  600 MW by 2012. The project had been made possible largely because of Chinese financing; the government signed up for additional financing from China in June, to build the second stage of the project.

Lanka Coal Company Private Limited was incorporated for the sole purpose of procuring coal for coal-fired power plants in the country. Shares of the company are held by the Treasury, the Ceylon Electricity Board, the Sri Lanka Ports Authority (SLPA) and the Ceylon Shipping Corporation Limited.

Interested parties can purchase the bidding documents from the Lanka Coal Company Private Limited office located at 51/3, Dutugamunu Street, Dehiwala, on any working day between the 27th of July and the 10th of August.  The bids will close on 10th September 2009.

In the meantime, world coal prices have come down sharply from approximately US$170 per tonne in June 2008 to US $60 per tonne in March 2009. The world currently consumes over 4,050 mega tonnes of coal, of which the majority is either utilised for power generation, steam generation or cooking. According to available data, the mining of coal has grown fastest in Asia, while Europe has actually seen a decline in production. Global coal production is expected to reach 7 billion tonnes by 2030, with China accounting for around half the increase over this period. Coal plays a vital role in power generation and this role is set to continue in the future. Coal currently fuels 39% of the world’s electricity and this percentage is expected to remain at similar levels over the next 30 years, as per available data.
Source: Daily Mirror



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