HNB and DFCC joint investment bank Acuity Partners owned Lanka Ventures PLC (LVEN) has increased the group’s investments in Hydro Power Projects to Rs.416 million during the financial year. In the latest annual review of the company, Chairman Jonathan Alles highlights that as at March 31, 2016 financials the group’s total investment in energy projects stood at Rs. 2,123 million.
The financials outlines that the investment in hydro-power projects aggregated to Rs. 416 million as at March 31, 2016 whilst the total installed capacity of hydro power plants that are presently operating and under construction is 17 MW.
During the year under review the investment portfolio had expanded by Rs. 112 million with an investment of Rs. 85 million in a 1.2 MW hydro power project which is being constructed across Kehelgamuwa Oya in Bogawantalawa in Nuwara Eliya District. The LVEN group’s equity stake in Campion Hydro (Private) Limited (CHPL) which owns the new power plant is 73% and the plant is expected to be commissioned early 2017.
The group had further invested a sum of Rs. 27 million in Sapthakanya Hydro Electric Company (Private) Limited (SHCL), a 1.3 hydro-power plant constructed across Maskeliya oya in Norton Bridge which commenced commercial operations in September 2015. The financials highlight that the total equity investment in SHCL amounted to Rs. 98 million which offered LVEN group an equity stake of 58% in SHCL.
Further the Lanka Ventures group’s total investment in the two wind power plants of an aggregate capacity of 15 MW stands at Rs. 667 million whilst total investment in thermal power sector is Rs 1,040 million and represents two projects in Bangladesh with a total installed capacity of 104.4 MW.
Alles in his review goes on to explain that the LVEN group’s energy sector investment portfolio is well diversified in terms of energy source such as hydro, wind and thermal. According to him in terms of invested amount the spread among hydro, wind and thermal energy is 20%, 31% and 49% respectively. He further adds that in terms of geographic locations LVEN’s hydro power projects are spread across several districts in Sri Lanka and as a result the company will benefit from rainfall in different parts of the country.