Sri Lanka's Cabinet led by President Anura Kumara Dissanayake has revoked a decision to award a controversial 484 MW of wind power plants in Mannar and Pooneryn to Adani Green Energy SL Ltd.
The project was awarded to the company by Dissanayake's predecessor Ranil Wickremesinghe in June 2024. Concerns were raised over the arbitrary price of US cents 8.26 per kilowatt hour when the local bidders offered 4.88 cents.
Additionally, several environmental organisations, including the Wildlife and Nature Protection Society and Environmental Foundation Ltd., opposed the project due to inadequacies in the Environmental Impact Assessment.
Mannar is a major habitat for migratory birds. The project was opposed by the bishop of Mannar, who represents the local community and raised concerns over the possible harm to local industries and livelihoods due to the proposed Adani project.
President Dissanayake had promised to revoke the deal and seek international tenders to develop wind power in Sri Lanka during the election campaign.
“Everyone interested in environmental integrity and financial transparency will celebrate the fact that President Dissanayake has delivered on his promise to defeat this conspiracy to defraud the people of Sri Lanka," Biodiversity scientist Rohan Pethiyagoda told the DailyFT. Pethiyagoda protested against the project last year.
“I am delighted by this decision. But it is not enough. The government must now release all the related files to the Bribery Commission and request a full investigation as to how this scam was perpetrated in the first place. Who was the mastermind behind it? Remember, the last government agreed to buy electricity from Adani at a rate that was 70% higher than the locally tendered price. Into whose pockets was that 70% going? It added up to billions of dollars,” he added.”
The government has formed a new project Committee and a procurement committee to make recommendations on Adani’s proposal, which will be restrained to invite international bids for the project.
“It could be that the President is under pressure to give this project to an Indian company,” Pethiyagoda said. “In which case bids will likely be restricted to companies incorporated in India. Then, Adani too can compete openly and transparently,” he added.
(By arrangement with livemint.com)