ECONOMYNEXT - Pan Asian Power said it had bought Lower Kotmale Oya Power Two (Pvt) Ltd., a special purpose vehicle company formed to develop two mini-hydro power plants on which it expects a 25 percent internal rate of return.
It said, in a stock exchange filing, that the SPV was formed to develop two cascade projects – the 2.0MW Lower Kotmale Oya II mini-hydro power project and the 1.0MW Medakumbura MHP.
The plants will use the water from Kotmale Oya in Pundaluoya township in the Nuwara Eliya district.
The restructured project is expected to start by mid-2018 after the remaining approvals are acquired, Pan Asian Power said.
The estimated total investment in the two power plants, which will generate 7.53 Giga watt hours a year, is 400 million rupees.
“The company expects the IRR on the investment to exceed 25 percent based on reasonable estimates,” it said.
“Due to convenient accessibility, short length of the structures and minimum environmental impact, management expects the timeline of construction to not exceed 12 months.”
The plants will use the water from Kotmale Oya in Pundaluoya township in the Nuwara Eliya district.
The restructured project is expected to start by mid-2018 after the remaining approvals are acquired, Pan Asian Power said.
The estimated total investment in the two power plants, which will generate 7.53 Giga watt hours a year, is 400 million rupees.
“The company expects the IRR on the investment to exceed 25 percent based on reasonable estimates,” it said.
“Due to convenient accessibility, short length of the structures and minimum environmental impact, management expects the timeline of construction to not exceed 12 months.”
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