By: Staff Writer
Colombo (LNW): Foreign Direct Investment will be bringing foreign direct investment for the oil refinery project in Hambantota,which is channeled through the approved local banking system through Inward Investment Accounts (IIA) as per the Foreign Exchange Act and its Regulations in Sri Lanka, the Board of Investment (BOI) said.
Responding to criticism of the project and also possible money laundering claims, the BOI said that in the case of the oil refinery project at the Mirijjiwila Export Processing Zone, Hambantota, all finance
cial transactions by the investor are routed through a reputed commercial bank of Sri Lanka. All commercial banks have their own AML/CFT regulations, which are also carefully monitored by the Financial Intelligence Unit of the Central Bank of Sri Lanka, it said.
Seven companies have submitted Expressions of Interest (EOI) for the proposed refinery in Hambantota.
Power and Energy Minister Kanchana Wijesekera said that the 7 companies submitted EOIs for the proposed new refinery in Hambantota by the deadline yesterday.
The seven companies are Grant & Shearer Ltd. of Nigeria, Sinopec of China, Petrichor Capital Sbn. Bhd. of Malaysia, Vitol Group of Singapore, Matin Tejarat Co. of Iran, Harree Management Services (Pvt.) Ltd. with Marka Invest of Sri Lanka and the UAE, Deniyaya Engineering Sales and Service Syndicate of Sri Lanka.
The technical evaluation committee and other procurement committees will evaluate the EOIs and issue the Request For Proposals (RFP) to the suitable applicants.
Earlier, the Cabinet approved a proposal to enter into agreements with Sinopec of China, United Petroleum Company of Australia and M. Parks Company of the United States of America for the importation, storage, distribution, and sale of petroleum in Sri Lanka.
The Government said that 26 companies had submitted proposals for the importation, storage, distribution, and sale of petroleum in Sri Lanka on long-term contracts.
Among these, 13 eligible companies had been recommended by the special committee appointed by the Cabinet and seven companies had submitted detailed proposals.
Accordingly the Cabinet of Ministers approved the proposal presented by the Minister of Power and Energy to enter into a contract with the 3 companies on long term contracts as per the provisions of the Petroleum Products (Special Provisions) (Amendment) Act No 33 of 2022, based on the recommendations made by the Technology Appraisal Committee, the Cabinet Appointed Special Committee and the Procurement Appeal Board
Meanwhile The Cabinet of Ministers has approved a proposal put forward by the Minister of Power and Energy Kanchana Wijesekera to establish a solar power plant at Sampur, Trincomalee by a joint venture company of Ceylon Electricity Board (CEB) and National Thermal Power Corporation (NTPC) of India.
The National Thermal Power Corporation of India and the Ceylon Electricity Board have inked an agreement last year for the joint implementation of a 135 MW solar energy project in two phases at the same site where the Sampur Coal Power Plant was planned to be built earlier.
Under the first phase of this project, it is expected to implement a 50 MW solar power project with a total investment of US$ 42.5 million and to construct a 40 km long 220 KV transmission line from Sampur to Kappalthurai at an estimated cost of US$ 23.6 million.