Sri Lanka: Sampur Solar PV Power Project Financing

proposed

The Project involves the design, engineering, construction, commissioning, operation, and maintenance of a 120MW ground-mounted solar photovoltaic (PV) project in Sampur, Sri Lanka (the “Project”). CEB has entered into a Joint Venture & Shareholders' Agreement (JVSHA) with NTPC Limited (NTPC) (collectively, the Sponsors) for equal equity participation in Trincomalee Power Company Limited (TPCL). TPCL is the Project Implementing Entity (PIE) responsible for the design, engineering, financing, construction, commissioning, operation, and maintenance of the Project on a Build-Own-Operate (BOO) basis. The Project will be developed in two phases - Phase I capacity of 50 MW followed by Phase II capacity of 70 MW. The Project cost has been estimated at USD 144 million (for Phase I and Phase II capacity together), expected to be funded on a debt-to-equity ratio of 75:25. The equity portion will be equally shared by NTPC and CEB. AIIB will provide Sovereign Backed Financing loan to Ministry of Finance, Government of Sri Lanka (GOSL) to fund up to USD 20 million of Project related expenditures such as solar PV modules, other key equipment, balance of plant costs, financing costs, etc. This financing to GOSL is considering CEB's 50 percent equity stake in TPCL. The Project senior debt financing will be led by AIIB on non-sovereign basis with co-financing from the Asian Development Bank (ADB) and other potential lenders.