Time: 2024-05-17
Advocata Institute Chairman Murtaza Jafferjee recently questioned the Sri Lankan Government's decision to procure renewable energy from Adani Group without a competitive tendering process. During a panel discussion on 'Sustaining Stability', Jafferjee raised concerns regarding the high rate of $0.0826 per unit allocated to the untendered project, significantly exceeding the standard rate of less than $0.06 per unit for similar projects. This has led to doubts about the transparency and cost-effectiveness of the procurement deal.As an engineer and economist, Jafferjee emphasized the significance of competitive tendering and proper procurement laws to drive down costs, citing the IMF Governance Diagnostic Report. He highlighted the need for constraint optimization and competition to achieve economic efficiency, pointing out the absence of a comprehensive procurement law in Sri Lanka. Jafferjee also stressed the importance of fostering genuine entrepreneurship to stimulate economic growth and create new job opportunities.
Furthermore, Jafferjee advocated for the introduction of Free Trade Agreements (FTAs) to promote competition in tradable sectors, aiming to address issues of patronage, rent-seeking, and crony capitalism prevalent in the Sri Lankan business landscape. He urged the government to focus on creating two million new jobs, with one million dedicated to expanding the labor force and another million aimed at replacing low-productivity jobs. By encouraging competition, optimizing procurement processes, and fostering entrepreneurship, Sri Lanka can enhance its energy sector efficiency and drive economic growth.
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