Hatton National Bank as the Lead Arranger of the Syndicated Loan together with People’s Bank, DFCC and Bank of Ceylon signed off Loan Agreements to finance the setting up of Western Power Company’s waste to energy plant, the first of its kind in Sri Lanka. A subsidiary of Aitken Spence PLC, Western Power Company has scheduled the commission of the 10 Mega Watt facility by 2020, in Kerawalapitiya, Muthurajawela, that will consume all of Colombo Municipality’s solid garbage.
Designed to use 700 Metric Tons of municipal solid garbage on a daily basis, the Company has already made arrangements with Colombo Municipal Council (CMC) for collection – the preparatory work of which was the need for segregation of household garbage to solid waste and recyclable piles – pre-requisites of an efficient and effective Waste to Energy system.
The syndicated facility arranged by HNB is for a total sum of LKR 9.0 billion with Bank of Ceylon, DFCC and People’s Bank joining in as the Co-Lenders. DGM Corporate Banking of HNB, Ruwan Manatunga signed off on behalf of lead financier, together with Aruni Goonetilleke – Head of Corporate Banking of People’s Bank, Palitha Gamage – Executive Vice President / Chief Risk Officer of DFCC and Russel Fonseka – DGM Corporate Banking of BOC, which took place at HNB Towers.
“We are proud to play a lead role in financing a project of national priority” expressed Ruwan. Being a part of a solution to Colombo’s growing issue of solid waste management fits in with the Bank’s role in social and environmentally sustainable solutions.”
Ruwan went on to state: “The recovery of energy from waste has become crucially important with Waste to Energy (WtE) power generation, one of the world’s most effective and green modes of managing disposal of garbage. Our business too is evolving in response to this global trend.”
Head of Project Financing, Majella Rodrigo acknowledged the cooperation and commitment of all lenders to the syndication in achieving this all important milestone. He noted: “HNB, like so many of our clients, recognizes that addressing environmental challenges is not only a necessity but a compelling economic opportunity. We already have an established presence in environmentally conscious businesses and we are delighted to be able to build on our expertise to help meet the booming demand for green finance. We’re excited to be at the forefront of something so game changing.”
Expressing his gratitude on behalf of the promoters of Western Power Company Mr Rajan Britto, Deputy Chairman and Managing Director Aitken Spence PLC appreciated all the lenders for their tireless efforts to achieve the successful financial closure of this transaction.