- October 1, 2018
- Posted by: Gihan Gunasekara
- Category: News & Events
Vidullanka CEO Riyaz Sangani exchanges the agreement signed with Yoichi Yoshida, General Manager-in-charge, New Business Department, Technology Business Development Division of Obayashi Corporation in the presence of Vidul Biomass CEO Chamil Silva
Vidullanka PLC announced the disposal of 49% equity stake in Vidul Biomass Ltd. to OC Energy Lanka Ltd. forming the joint venture to develop 3.3MW Dehiyathakandiaya Dendro power project. The joint venture ensures further equity investment of $ 3 million in to the Vidul Biomass Ltd. jointly by Vidullanka PLC and OC Energy Lanka in developing the power project, the company said in a stock exchange filing.
OC Energy is a fully owned subsidiary of Obayashi Corporation of Japan, one of the five largest companies in the Japanese construction industry. The investment in Vidul Biomass Ltd. is the first of its kind in Sri Lanka for the company.
“We are happy to be able to partner with OC Energy backed by the Japanese construction conglomerate, Obayashi Corporation in perusing our vision to be the foremost in developing renewable energy resources,” the CEO of the Vidullanka PLC noted.
Dehiyathakandiya Dendro power plant is the very first Dendro powered power plant developed by Vidullanka, after having developed more than ten hydro power plants in Sri Lanka and Uganda. The debt funding for the power project is provided by a joint arrangement between the Islamic Banking Units of HNB Bank and NDB Bank.
The Vidullanka group reported improved performance for the first quarter of the financial year in continuing the outstanding performance during the last financial year. In addition to the Dendro power plant, which is scheduled to be commissioned during the latter part of the current financial year, the construction of the Bukinda SHPP with 6.5MW installed capacity in Uganda is set to commence in early 2019. Vidullanka is poised to grow in the renewable energy arena with new projects and global partnerships reaching new milestones.