First hydropower company to be listed on the CSE:

Vidullanka records profit, ventures into more projects

BY ANJANA Samarasinghe

VIDULLANKA LTD., a company which constructs and operates mini hydroelectric power projects in Sri Lanka recorded Rs. 71.9 million net turnover for the year ended March 31, 2005 which is the growth of 11.6 percent over the previous year.

The pre-tax profit was Rs. 51.1 million. The company has declared a total dividend of 20% for the year ended March 31, 2005.

The improved profitability was enhanced by substantial savings in financial costs as a result of retiring the debt following private placement in shares. The entire debt was replaced by equity by the year ended March 31, 2004.

The company is due to commence their second mini hydropower project at Batatota Oya in Ratnapura investing Rs. 240 million next month.

Managing Director of Vidullanka Ltd. Riyaz M. Sangani said that the new project has a capacity of 2Mw and with 8 Gwh annual energy supply.

The commissioning of this plant will enable the company to benefit from the tax holiday from the BOI. The new project will increase the total energy generating to the national grid from 12 Gwh to 20 Gwh.

"Our first project, the Bambarabatu Oya mini hydro power project contributes 3.2 Mw of electricity to the national grid and has a 15 year standard power purchase agreement with Ceylon Electricity Board (CEB), he said.

A Letter of Intent (LOI) has been obtained from the CEB to develop their third mini hydropower project in Hiniduma - Deniyaya. Through this project the company expects to connect to the National Grid by November 2007.

There is a huge growth in the renewable energy sector due to high prices of oil.

The company is also interested in investing other renewable energy projects such as solar, dendro and wind.

'We expect to commence commercial operations of our solar power project in November. This is a Rs. 25 million project to sell and distribute solar home systems. Solar panels will be imported and other components will be manufactured in Sri Lanka, Sangani said.

The company is researching to develop a Dendro Plant in Welikanda. The total cost estimate for the project is Rs. 240 million and it has the capacity of 2Mw. The project requires 800 hectares. Mahaweli Livestock Development Board is to provide 1,000 acres for the project.

Vidullanka is carrying studies on the feasibility of a wind power project. Nearly 8000 Mw of power is installed by wind power around the world. We feel there is a high potential in Hambanthota for wind power projects, he said.

Vidullanka Ltd was listed on the Colombo Stock Exchange (CSE) recently. It was the first hydropower company to be listed in the CSE.