May 13, 2010 (LBO) – Sri Lankan private power producer Vidullanka plans to invest 42 million rupees for a stake in another hydropower firm that is to build a mini-hydro plant in the island’s south, a stock exchange filing said. Vidullanka will get a 26 percent stake in Nilwala Vidulibala Company for the investment.
Nilwala Vidulibala Company will build and operate a two megawatt min-hydro power plant in southern Morawaka.
It has already signed a deal with the Board of Investment, the investment promotion agency, to build the plant,
BOI approval entitles companies to investment benefits like tax breaks and duty free imports of machinery.
The stock exchange filing said the total project cost of the new plant by Nilwala Vidulibala Company is 360 million rupees.
In March Vidullanka commissioned and connected its fourth power plant to the national grid, a plant owned by Gurugoda Hydro, a joint venture between Vidullanka and Hiradamani.
Vidullanka already operates a 3.2 MegaWatt (MW) plant and a 2MW plant and has a 15-year power purchase agreement with the Ceylon Electricity Board.