WindForce delays Senegal project
WindForce PLC which went public last year is in a dilemma to raise cash for their Senegal wind power project owing to Sri Lanka’s debilitating forex crisis and high tariffs in Senegal, industry officials said.
The project will be executed in partnership with Vidullanka PLC, which has experience operating in the African region. Electricity generated from the plant is to be sold to Senegal National Electricity Company (SENELEC) for 25 years.
The company detailed in a Colombo Stock Exchange (CSE) announcement recently that negotiations with the Senegal utility are still underway, however, the project is becoming unattractive with aggressive tariff proposals (in that country).
The US$33 million venture is in a quagmire with the company unable to move funds to Senegal with the current restrictions on forex repatriation in Sri Lanka.
Management discussions were initiated to utilise funds for more lucrative projects currently in the pipeline, the CSE announcement added.
The company aims to concentrate on two more projects apart from the ones that are ongoing in Vavunathivu, Southwest of Batticaloa and Mannar, officials said. The former 10 Mega Watt (MW) project will be commissioned in April and the 15 MW Hiruras Wind Power Plant project in Mannar will start in December.
The relevant power purchasing agreement for Vavunathivu was signed with the Ceylon Electricity Board. The anticipated total project cost is Rs. 1.4 billion. These two new wind power plants will increase the installed capacity of WindForce’s wind energy portfolio to 84.2MW.
Apart from these, the company has ventured into a 10 MW project in Halawatha and two projects in Mannar fetching 10 MW power each.
WindForce has 27 renewable plants in
Sri Lanka, Pakistan, Uganda, and Ukraine.
Last April the company floated an initial public offering (IPO) that raised Rs. 3.2 billion to expand in Sri Lanka and overseas.
WindForce IPO offered a 15 per cent stake or 202,615,341 new ordinary voting shares of par value of Rs. 10 at Rs. 16 each.
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