ECONOMYNEXT – The tender for Sri Lanka’s proposed $4 billion oil refinery in the investment zone near Chinese built Hambantota port will be awarded within three weeks, a state minister said.
China’s Sinopec and Vitol Asia based in Singapore are the two firms shortlisted out of seven companies that responded to an expression of interest early this year.
“We have issued the RFPs (request for proposal) for the two firms shortlisted. They have submitted the RFPs and now we are in the process of reviewing the RFPs,” State Power & Energy Minister D V Chanaka told reporters on Thursday (19).
“There is a process which involves Cabinet approvals and Ministries. Our expectation is to award the tender within a minimum three weeks.”
Sovereign debt defaulted Sri Lanka has been struggling to attract foreign inflows. The refinery is part of a strategy to attract more foreign investments into the bankrupted nation.
Government sources say the refinery is likely to be awarded to Sinopec which has already started retail fuel supply and is competing with LIOC, a fully-owned subsidiary of Indian Oil Corporation.
Sri Lanka received seven responses to an expression of interest (EOI) to build the export-oriented oil refinery in Hambantota, in the island’s Southern coast of Hambantota and next to a Chinese-owned port.
Grant & Shearer Ltd from Nigeria, Sinopec from China, Petrichor Capital from Malaysia, Vitol Group from Singapore, Martin Tejarat from Iran, Dandeniya Engineering Sales and Service Syndicate, a local-based company and Sri Lanka’s Harree Management with UAE’s Marka Invest submitted their expression of interest early thi year. (Colombo/Oct 21/2023)