Heladhanavi HFO Power Plant

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In July 2003, Government of Sri Lanka (GoSL) awarded a 10 year build-own-operate (BOO) contract to Heladhanavi Ltd. to build and operate a 100 MW thermal power plant at Puttalam, a town on Sri Lanka's western coastal belt. Power from this plant was sold to Ceylon Electricity Board (CEB), state-owned power utility, under a power purchase agreement signed in May 2003. The project consisted of six 18V46 Wärtsilä two stroke medium speed engines (17,550 kW each) This power plant was one of the two 100 MW diesel thermal power plants awarded by the GoSL to independent power producers (IPP) on a fast track basis. The other power plant was developed by a joint venture led by local Aitken Spence & Company Ltd. in Embilipitiya, north-central Sri Lanka. The objective of the thermal power plants was to improve generation and reduce Sri Lanka’s dependence on hydropower. Heladhanavi Ltd. won the international tender, conducted by GoSL in 2002, by offering the lowest tariff among the qualified bids. Heladhanavi Ltd. was a joint venture between local companies Lakdhanavi Limited, Sri Lanka’s first IPP, and Hemas Holdings Limited. There was no public information on the ownership structure of Heladhanavi Ltd. Lakdhanavi Limited, a subsidiary of Lanka Transformer Limited, was owned by CEB, ABB Group (27%) of Norway and an Employees Trust. The total cost of the project was estimated at US$ 62 million. The project reached financial closure in 2004. The entire financing for the project, both equity and debt, were arranged locally. Lakdhanavi Limited was the Engineering, Procurement, and Construction (EPC) contractor during construction and was responsible for managing the plant after commissioning through an operation and maintenance (O&M) contract. Construction work on the project commenced in October 2003 and the power plant began commercial operations in September 2004. http://www.hemas.com/power-thermalplant-readmore