Sept 27, 2007 (LBO) – A Malaysian firm which has bought a listed construction firm in Colombo has said it had bought an independent power producer (IPP) which will supply Sri Lanka’s northern Jaffna peninsula. MTD has also been interested in an expressway Sri Lanka hopes to build between its capital Colombo and the central hill city of Kandy. MTD Capital, which already controls Kapila Heavy, a listed construction firm, said in a regulatory filing in Malaysia that it had bought 80 percent of Northern Power Company (NPC) from one Jehan Prasanna Amaratunga.
The Jaffna peninsular, which is cut-off from the rest of Sri Lanka by a stretch of Tamil Tiger held territory, is supplied by two 15 MegaWatt IPPs run by Sri Lanka’s Coolair in Jaffna’s Kanasanthurai area and the international power firm Agrico in Chunnakam.
The Agrico plant is nearing the end of its useful life, power sector analysts said.
MTD Capital said Northern Power was incorporated on March 15, 2007.
“NPC’s principal activity is to undertake the financing, construction, owning, operation and maintenance of a 15 Mega Watt Heavy Fuel Oil Diesel Power Generating Facility at Chunnakam in Sri Lanka,” the company said.