Basil in a mad scramble for commission collection on US $ 2200 million refinery project before President’s return

Tuesday 1 of November 2011

This BOT transaction brings huge losses to the country (Lanka-e-News -31.Oct.2011, 11.30PM) Basil Rajapakse is making grand preparations to gobble down a huge commission on the largest contract at the moment in Sri Lanka – the modernization of the Sapugaskande oil refinery at a cost of US dollars 2200 million which is being transacted without any transparency, on terms and conditions which are detrimental to the country.

Basil is over anxious to ‘fix’ this deal before the President returns to the Island for obvious reasons.

It is learnt that it is only the crude oil imported from Iran which can be refined at the present at the Sapugaskande refinery., The crude oil imported from Saudi Arabia cannot be .refined., and only 35000 barrels of crude oil per day can be refined at present at the refinery. It is believed that this can be increased to between 50,000 and 100,000 barrels per day.

Earlier , an agreement was signed with Iran for the expansion of the Sapugaskande refinement processes , but after America banned the Iranian currency , this agreement had to be abandoned. Iran had estimated a cost of US dollars 1500 million for this refinery project.

Now, four Companies had presented their reports regarding the oil refinement expansion project to the public funds Dept. of the Treasury . The Chinese Company ‘Huanqui’which is closely linked to the Rajapakse regime has offered the highest bid of US dollars 2200 million to complete this project . Basil and a prominent group of the regime who are drooling over the massive commission component at the expense of the country’s interests are making an unholy scramble to grant the project to this Co. despite the fact that the bid of this Co. is the highest. meriting rejection.

Among the other countries which have submitted reports on their bids are ‘Sino Pak’ , a Chinese Co. and a Czechoslavakian Co. Although the reports of the other Companies for this project are comprehensive and run into many pages., the report of the ‘Huanqui’ Co. which enjoys the patronage of the Rajapakse regime, in respect of this massive 2200 dollars project is contained in just two or three A 4 pages. ( A part of this report is published herein) .

The most intriguing and frustrating aspect of this deal which lacks transparency is , under the guise of expanding the refinement processes of crude oil in SL , the ‘Huanqui’ Co. is going to be blessed with a windfall by the regime, for the crude oil refinement and the profits there -from are to be enjoyed by the ‘Huanqui’ Co. for 20 or 30 years . This will revert to us only at the end of this period under the ‘ Build operation and Transfer’ (BOT) transaction.

It is significant to note that Sri Lanka can settle the monies taken in this regard via its oil refinement Industry earnings within 5-6 years. When such possibilities are there , SL entering into a BOT transaction is a most dismal measure and most detrimental to national interests engendering huge losses to the country, experts say.
The SL representatives of this Huanqei Co. are Prabath Nanayakkara and Dilshan Wickremesinghe , the son of Shiranthee Rajapakse’s brother.

This project has so far not even been submitted to the ‘Standard Cabinet Appointed Review Commission’ (SCARC) for its review .

Basil Rajapakse is making hasty moves to conclude this deal before the President’s return. Sources however say , there has arisen a cut -throat competition among the regime’s group itself as regards collection of commission from the Huanqei Co. Each is tumbling over the other to grab it first , fast and full.