Lanka Ventures PLC (LVL) though its fully owned subsidiary, Lanka Ventures Energy Fund (LVEF) will go to Bangladesh and East Africa with some power generation projects, according to officials.
“We aim to go to Bangladesh first with two thermal power plants – each costing US$ 50 million,” Sumith Arangala, CEO LVL told the Business Times. He added that each plant is 52.2 Mega Watts (MW) and LVEF will invest US$ 10 million while LTL Holding, one of their partners in power projects will contribute the balance.
“We are in the process of identifying suitable projects in East Africa which will be our next destination after Bangladesh,” Mr. Arangala added. He said that 23% for Rs 700 million in LVEL will be divested in a private placement and LVL is looking for several investors.
The Group recorded the best ever financial results during 2010 /2011 achieving the highest income and profit since inception. The total income increased to Rs. 160 million from Rs. 125 million compared to the previous year, which an increase of 28%. Of this income, Rs. 127 million represented investment income which is also the highest ever achieved and was significantly higher than the Rs. 89 million recorded in the previous year.
Mr. Arangala said that LVEF entered into an agreement with LTL Holdings in setting up a 10 MW wind farm in Kalpitiya peninsula, a region considered to offer the best wind power potential in the country. In this project - Pawan Danavi (Private) Limited (PDL) - LVEF’s investment is Rs. 384 million representing a 40% equity stake.“We are also actively pursuing the development of several mini- hydro power projects having a total installed capacity of 14.4 MW on our own and with our joint – venture partners,” he said, adding that the company is currently obtaining approvals.