Asia/Pacific News
Critics Question Tendering Process for Hambantota Bunker Facility Operation
The Sri Lanka Ports Authority (SLPA) is the subject of questions regarding the port authority's call for tenders for the operation of the Hambantota marine oil and gas tank farm and bunkering facilities, which sources say ran for only two weeks ending March 10, Sri Lankan media reports.
"Normally tenders are opened for around three or more months and companies then can provide a proper application with foreign expertise. How can you get serious proposals in such a short time," a private sector industry official is reported to have said.
Source say that an undated document, Basic Guideline Document for Investment Proposals for Operation of Bunkering Facility and Tank Farm Port of Hambantota, could have been in circulation since mid-February.
Sarath Perera, Hambantota Port Company's General Manager, is reported to have confirmed that a call for tenders was put forward in relation to the tank farm, which saw bunkering operations halted last April.
Critics also say the call for tenders seems to have been aimed at excluding local players, with sources saying it requires the project proponent to be an active player within the oil industry, procuring bunker fuel sales and operating a marine bunker terminal with bunker barges of a 100,000 metric tonne (mt) per month capacity over 24 months for the past three years.
With the Sri Lankan bunker market carrying out about 30,000 mt per month, sources say the tender requirements indicate that the project proposal was targeted toward overseas parties.
In addition, it is noted that overseas bidders would have to perform a site visit at the tank farm in order to accurately evaluate needs and capabilities at the facility, a process that is said to be unfeasible within the tender's reported two week time frame.
Critics also did not speak highly of the SLPA's previous involvement with bunkering at Hambantota, with Ports Minister Arjuna Ranatunga last year saying that a bunkering "irregularity" during the governance of the country's previous administration has resulted in a $19.9 million loss for the SLPA on the bunkering operation before it ceased operation.
In January, Ship & Bunker reported on SLPA plans to restart bunkering at the Port of Hambantota and increase vehicle transshipment activities in an effort to help repay debt accrued through loans taken for the port's construction.
