Vallibel Erathna SHPP

active

In 2001, Ceylon Electricity Board (CEB) approved the development of a 9.9 MW mini hydro project in Kuruwita (Ratnapura district, Sri Lanka) by Vallibel Power Erathna Limited (VPEL) on build-own-operate (BOO) basis. By December 2002, VPEL obtained all the necessary approvals from the various government agencies to develop this “run of river” mini hydro project that utilized the water flow of the upper reaches of river Kuru Ganga. In 2002, VPEL entered into a long term power purchase agreement with CEB for the supply all its power. VPEL was originally fully owned unit of Vallibel Holdings, a local equity fund owned and run by Sri Lankan entrepreneur Mr. Dhammika Perera. In April 2006, Vallibel Holdings offered 20.1% stake in VPEL through an initial public offering (IPO). The money raised through the IPO was used to retire long term loans obtained for project financing and to increase equity investments in another of Vallibel Holdings’ mini hydro project, Didul (Pvt) Limited. The total cost of this mini hydro project was estimated at US$ 6.78 million (SLRs 740 million). The project reached financial closure in March 2003. Construction on the project began in July 2002. Commercial operations commenced in July 2004. http://www.vallibel-hydro.com/projects/erathna-hydro-power.php