Minister of Energy Udaya Gammanpila is under fire as he is yet to terminate a costly Chinese oil pipeline renovation project, despite local engineers offering to carry out the work at one-tenth the cost, The Sunday Morning learnt.
The proposal was submitted to the Cabinet by former Minister of Petroleum Industries Kabir Hashim last October to renovate the dilapidated oil pipeline at a cost of Rs. 15 billion by China Petroleum Pipeline Bureau (CPP).
However, even though Cabinet approval was received, the project had not proceeded due to the vehement opposition by the trade unions (TUs) last year.
Yet, the project still has Cabinet approval, as neither the previous Minister nor the present Minister has taken any action to terminate the project.
The TUs attached to the Ceylon Petroleum Corporation (CPC) raised concerns over the delay of the Minister in terminating the expensive project. They are pushing for it to be handed over to local engineers at the CPC and Ceylon Petroleum Storage Terminals Ltd. (CPSTL) at a total cost of Rs. 1,900 million for the renovation of both 12 and 18-inch pipelines.
“Earlier for the renovation of a six-inch single line, it cost only Rs. 350 million from the local engineers, but considering the rupee depreciation, as estimated by the engineers attached to the CPC and CPSTL, it would cost around Rs. 1,900 million to renovate the dual pipeline system,” Jathika Sevaka Sangamaya (JSS) CPC branch President Ananda Palitha stressed.
“As estimated, the costs for the 12-inch line and 18-inch line would be around Rs. 700 million and Rs. 1,200 million, respectively, which is far below the Chinese proposal,” Palitha stressed.
Urging Minister Gammanpila to terminate the approved proposal by the CPPB, the TU leader stressed that if the project is not terminated, there is a possibility the CPPB would take legal action.
“Therefore, we urged the Minister to withdraw the project and go ahead with local engineers,” he reiterated.
When contacted, Gammanpila said a decision has not yet been taken and that he is studying the proposal.
“There has been a tender process and the proposal has been approved by the Cabinet, following approval received from the committee. Therefore, a decision cannot be made without studying it properly,” he said.
(The Morning)