Sapugaskanda Power Station

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The 50.8-MW, $62.0 million, Sapugaskanda Power Station is being developed by Asia Power Private Ltd. (APPL). APPL is a consortium consisting of Kloeckner Humbolt Deutz (KHD) Great Britain (31.8%), Nissho Iwai (18.2%), the International Finance Corp. (11.4%), IFC/Commonwealth Development Corp (CDC) quasi-equity (11.4%), DEG (11.4%), Wain Scandinavian Contractor A/S (BWSC) (6.8%), IFU (6.8%), and John Keels Holding Ltd. (2.3%). The plant is designed as a base load facility with minimum guaranteed annual energy output of GWh and yielding a net plant load factor of 76.8%. The project is being built under a BOO contractual framework. KHD Humbolt Wedag is the contractor and Duetz Engine is the equipment suppliers. The plant was expected to become operational during 1998. The project has a 65:35 debt/equity ratio. In addition to its $2.5 million of equity and $2.5 million quasi-equity, the IFC is providing a $10 million direct (A) loan and a $25 million syndicated (B) loan. The IFC approved these transactions in its fiscal year 1996. In fiscal year 1997 it provided $2 million for risk management. Financial closure was reached on June 24, 1996. APPL signed a 20-year PPA with the Ceylon Electricity Board (CEB). A 20-year fuel supply agreement was reached with the Ceylon Petroleum Company (CPC). In 1998, MIGA approved an US$ 1.7 million guarantee to Nissho Iwai for its US$ 4.1 million investment in the project. In the fourth quarter of 2007, Kloekner Humbolt Deutz AG sold Deutz UK Ltd.'s 31.8% shareholding in APPL to the private equity firm, 3i. As of December 2008, sponsors could not be verified. 3i purchased Deutz Power Division along with Deutz UK's 31.8% holding in APPL in 2007. However, there was no publicly available information to verify if 3i remained a sponsor of APPL as of December 2008.