Sri Lanka Malaysia hydro firm in Rs600mn IPO

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

Nov 30, 2010 (LBO) – Panasian Power Limited, a unit of Malaysian based Majulia group is selling 200 million shares to raise 600 million rupees in an initial public offering which will open on December 07, officials said. Majulia owns the firm through its energy unit, Power Hub International (PHI).

Panasian Power owns a 2.0 MegaWatt mini-hydro plant in Sri Lanka’s Ratnapura district and has a power purchase agreement with state-run Ceylon Electricity Board which runs till July 2019.

Panasian has consistently generated more than 10 GigaWatt-hours (millions of units) of energy a year since 2005 at a plant factor of more than 60 percent, which officials say is the second highest in the country.

The plant factor measure the actual output against the total possible in a period, with the plant running at full capacity.

In 2009 the plant has generated 10.7 GWh of energy (61.3 percent plant factor), in 2008 11.2 GWh (61.1 percent plant factor).

Up to September 2010, the firm has generated 7.7 GWh of energy.

The firm is paid on the so-called ‘avoided cost’ formula which is based on the thermal costs of the CEB. Director Rifky Badurdeen says in the past the price has risen about 5.0 percent a year