MTD Walkers only infrastructure firm at Lanka Capital Market Day in LSE

Saturday, 4 June 2011 00:37 - - {{hitsCtrl.values.hits}}

Representing Sri Lanka Capital Market Day held yesterday at the London Stock Exchange, MTD Walkers was the only infrastructure company amongst 10 other blue chip companies selected to make a presentation at this prestigious event.

Addressing the audience, Viraj De Silva, Chief Financial Officer, MTD Walkers, said: “Following the end of the three-decade long war, Sri Lanka is in ‘build mode’ with US$ 7 b projects in the pipeline for the company in 2011-2015.”

These projects, he pointed out, were all backed by the Government and are a reflection of the country’s economic resurgence.

In the construction and piling sector, MTD Walkers is a top-ranked, only listed C-1 grade contractor to undertake projects for highways, bridges, ports and harbours, irrigation and water supply. The company is backed by a multi-national construction company with prior experience in large scale infrastructure development in an emerging economy.

MTD Walkers subsidiary, Northern Power Plant, is one of two IPPs operating in the north. With parts of the recently-liberated north operating with less than 15% in electricity distribution, Northern Power is in the process of expanding its capacity from 30mw to 50mw through 2021, implying an Internal Return on Revenue (IRR) of 25%.

With a full spectrum of engineering services, MTD Walkers recently signed a joint venture contract with China Shipbuilding to operate a floating dock at a cost of US$ 100 m in the new Hambantota Port in southern Sri Lanka. The company is also a principal sub-contractor to upgrade 200 telecommunication towers in Sri Lanka with a further 800 towers expected to be upgraded in the future.

Envisaging an exciting future, De Silva highlighted a JV with China-listed Anhui to build a 75km highway in Southern, Sri Lanka with an expected revenue of US$ 250 m. The company is also studying a proposal to construct Sri Lanka’s first toll road (US$ 850 m Colombo-Kandy expressway) as well as piling related projects to construct low cost housing for 40,000 families.

Additionally, a US$ 200 m worth water treatment project is under consideration.

De Silva further stated that the Government’s fast-tracked infrastructure development programmes including airports, ports, highways, land reclamation within the City of Colombo, water and sanitation and railways, as well as tourism related, mixed development and power generation projects, encapsulate the growth of the country and the vast opportunities available for MTD Walkers.