The government says it has withheld more than Rs. 9 billion in payments to a coal supplier due to concerns over substandard shipments, Minister Bimal Rathnayake said.
He said the withheld amount exceeds the estimated loss caused by the low-quality coal, adding that the financial impact has not fallen on the public or the government.
The Minister made these comments during the special government media briefing held in Colombo today, following the resignation of Energy Minister Kumara Jayakody.
“Due to the lower energy output from the imported coal, there is a loss. But the Public Utilities Commission has clearly stated that this will not be added to electricity bills,” the minister said.
He said payments for three coal shipments, amounting to over Rs. 5 billion, have not been made after the consignments failed inspection tests.
“Approximately Rs. 9.15 billion has been withheld from the supplier. Even though losses were estimated at around Rs. 8 billion, we have retained a higher amount. Therefore, there will be no loss to the public,” he said.
He added that the retained fund include a performance bond of USD 15 million, which is approximately around Rs. 4.5 billion.
“Any loss will be borne by the supplier. It will not affect the public or the government,” he said.
The minister also noted that penalties are imposed based on established quality standards, and that rejected coal cannot be returned once shipped, making financial recovery through such mechanisms necessary. (Newswire)