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JVP Leader questions granting 40% of ownership of LNG terminal to American company

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He alleged that while the CEB and the CPC had called for international tenders for the construction of the storage terminal and the pipeline network respectively, the Government had granted the contract to this American company overriding the proper tender procedure.

Dissanayake noted that while the Government plans on handing over the gas supply contract to this American company for a period of five years, creating a monopoly, questioned if the Government has estimated the total value of the entire project and the cost of the Yugadhanavi power plant.

He also noted that it is reported that the Government intends to hand over the LNG supply to this American company, not just for the Yugadhanavi power station, but all other LNG power plants that are constructed in that area. “This not only gives this American company the monopoly of LNG supply, but it also poses a threat to national security,” he added.

Hence, he asked if all such agreements intended or already signed between the Government and this American company had been submitted for Cabinet approval or which of the agreements were submitted for approval.

He also questioned which agreements were not submitted for Cabinet approval. The JVP Leader also noted that a separate office had been opened and staff appointed for the processing of the tender procedure.While the Tender application had closed in June, the Government had suddenly decided to award the tender to New Fortress Energy disregarding the tender procedure.

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