Counsel for Yugadanavi says US won’t exploit agreement

FR petitions as regards New Fortress Energy:

By Chitra Weerarathna

President’s Counsel Sanjeewa Jayawardene, PC, yesterday (15) told the Supreme Court that there was absolutely no basis for claims that the US would exploit the Yugadanavi agreement to further its interests.

Appearing for the founding company of Yugadanavi, Jayawardene said that the agreement between the government of Sri Lanka and the US-based New Fortress Energy would be reversible by the year 2035. The agreement would facilitate the flow of foreign currency to the country, and Sri Lanka didn’t have to spend anything on the pipeline and necessary infrastructure to be set up, the Counsel said.

Although the Yugadani power plant could run on LNG, tender procedures hadn’t been initiated for the supply of LNG, Jayewardene said, adding that instead the power plant had operated on heavy fuel. He pointed out the failure on the part of those responsible to initiate the required tender process.

The Counsel asked whether the country was going to wait for another ten years or so to take tangible measures to rectify the situation. He explained how Sri Lanka could save valuable foreign exchange by converting the Yugadanavi power station to LNG.

Even the Minister of Petroleum Products had not taken action to call tenders for the procurement of LNG though it was the most economical fuel, the Counsel said. The delay in converting Yugadanavi plant from to LNG had adversely impacted the public, the Counsel argued, claiming that the country experienced power cuts during droughts as it was over-dependent on hydropower.

The New Fortress of New York would have a 40 percent stake in the Yugadanavi power plant only for a specified period only, and all shares would be returned to Sri Lanka thereafter. The project would help lower the price of electricity, the Counsel argued.

The bench comprised the Chief Justice Jayantha Jayasuriya, Justice Buwanaka Aluwihara, Justice Priyantha Jayawardene, Justice Vijith K. Malalgoda and Justice L. T. B. Dehideniya.