Vidullanka strikes new PPA with CEB

Vidullanka PLC has signed a Power Purchasing Agreement (PPA) with the Ceylon Electricity Board for the sale of electricity generated from the 3.2MW Bambarabatu Oya Mini Hydro Power project.

The agreement is valid up to 31 May 2021 with an option to extend up to 31 December 2038, subject to securing required approvals. 

Bambarabatu Oya is the first project by Vidullanka PLC commissioned in June 2001, which marked the beginning of the Vidul Group.

In the interim results statement for the year ended 31 March, the company said the new standard power purchasing agreement (SPPA) for the period of 20 years from 1 January 2019 was pending and awaiting signing though the CEB continue to accept the supply of electricity from the power plant.

The revenue (amounting Rs. 96.29 million) was recognised based on the tariff of Rs. 8.12 per unit, which is the tariff applicable as per the new tariff scheme communicated by CEB by the letter dated 30 September 2019, the revenue amounting Rs. 102.15  million was recognised as a trade receivable for the 12 months period ended 31 March. 

The Bambarabatu Oya Mini Hydro Power Plant concluded the original stipulated contractual period of SPPA with the CEB on 1 June 2016. An interim SPPA was signed up to 31 December 2018 and payment was received in July 2019. 

Vidullanka said it has obtained all requisite consents and approvals from Public Utilities Commission of Sri Lanka (PUCSL) and other approving authorities and waiting for signing the SPPA with CEB.

During FY20, Vidullanka PLC Group revenue was Rs. 1.4 billion, up by 12% from a year earlier whilst in the 4Q, it shot up by 197% to Rs. 677.2 million.  

It has around 10 mini hydro projects in operations in Sri Lanka at present. By FY19, Vidullanka’s capacity stood at 26 MW with a total energy supply exceeding 100GWh annually to the national grids.

Pre-tax profit was down by 4% in FY20 to Rs. 601 million despite a 400% increase in 4Q to Rs. 360 million aided by high finance income among other reasons. 

Post-tax profit was down 28% to Rs. 377.6 million in FY20 and up by 279% to Rs. 234.7 million in 4Q.

In May 2019, Vidullanka PLC invested Rs. 27.2 million in Vidul Biomass Ltd. as part of the overall investment in Vidul Biomass. It also invested Rs. 22.84 million in Africeylon Power Ltd. in September 2019 and Rs. 217.3 million in Timex Bukinda Hydro (U) Ltd.