Ace Power Embilipitiya (Pvt) Ltd

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In July 2003, Government of Sri Lanka (GoS) awarded a build-own-operate (BOO) contract to Ace Power Embilipitiya (Pvt) Ltd to build and operate a 100 MW thermal power plant in Embilipitiya, north-central Sri Lanka. The power from this plant was supplied to state-owned Ceylon Electricity Board under a power purchase agreement. This power plant was one of the two 100 MW diesel thermal power plants awarded by the GoS to independent power producers (IPP) on a fast track basis. The other power plant was developed by a joint venture led by Lanka Transformers in western Puttalam district. The objective of the thermal power plants was to improve generation and reduce Sri Lanka’s dependence on hydropower. Ace Power Embilipitiya (Pvt) Ltd was initially a joint venture between Sri Lanka’s Aitken Spence & Company Ltd. and US based Caterpillar Inc. After the plant became operational in April 2005, Caterpillar divested its entire shareholding in the project and accepted a joint offer by Aitken Spence and DEG, German Investment and Development Company and a member of the KfW banking group. As of January 2006, Aitken Spence & Company Ltd. owned 74% of the shares in Ace Power and the balance was held by DEG. The total cost of the project was estimated at US$ 60 million. Construction work began in April 2004 and the project began commercial operations in April 2005. How to record DEG's equity stake?