COPE asks Govt. for report on Indo-Lanka use of Trinco oil terminal

The Committee on Public Enterprises ( COPE) has asked the Government to submit a report inclusive of the proposed joint programme between India and Sri Lanka, in connection with the use of the oil storage terminal in Trincomalee.

COPE has also asked for a copy of the feasibility report related to the development programmes on the storage complex be submitted to it prior to its approval.

The Committee has asked for these details from the Ceylon Petroleum Corporation ( CPC), after its officials told the Committee it is due to implement a joint programme with India, in connection with the development programmes for Trincomalee.

There are 100 oil tanks in Tricomalee, each of 100 metric tonne capacity, of which one is damaged, while 14 of the tanks are used by LIOC. Cabinet approval was obtained recently to take over 16 tanks for oil storage.

In a report submitted to Parliament, COPE also referred to the hedging agreement and said, while the total loss to the country due to the hedging deal, stands at Rs 10.2 billion, it will reach Rs, 15 billion, once all the due payments are made.

Of this amount, the Government has paid more than Rs 404 million as legal fees to foreign lawyers who appeared in the arbitration process started by the Deutsche Bank against the Sri Lanka government.