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| Sunday, 02 April 2006 |
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Five projects in the pipeline: Vallibel Power goes for IPO Vallibel Power, the hydro power firm held by entrepreneur Dhammika Perera's Vallibel Holdings will launch an initial public offering (IPO) by the first week of April, while gearing up for more such investments in the power sector. Vallibel has around five more such projects in the pipeline and work has already started on them, but we have not yet opted for funding as we did for the Vallibel Power Erathna project, CEO, Vallibel Erathna (pvt) Limited Prabodha Sumanasekera said. He said that another reason that funding has not been obtained so far is because, Perera is concerned that he maintains a good equity to debt ratio with the borrowing institutions. "This is to ensure that those power plants are also developed and not abandoned half way," he said. Vallibel hydro power ventures are in the wet zone. Sumanasekera said all are in and around the Ratnapura Ginigathhena areas. "Erathna has the distinct advantage of being in the best catchment location in the country, which is the Sri Pada Sanctuary. It is a peak wilderness forest reserve." Sumanasekera said that the highest quality plant and equipment from Germany have been used for Erathna, which is another reason that it is a viable venture in the long term. He said that during the last two years the plant has been in operation, Erathna has further proved its viability by improving the energy projections. "Erathna has surpassed the energy forecasts that were estimated during the feasibility studies and that is a huge plus point for the company," he said. A stock analyst said that the dividend return of Erathna is very predictable and very assured because of the various reasons cited by Sumanasekera and that there is no risk returns. " There is no gilt edge and the investors can rely on this investment," he said. Meanwhile, industry analysts are quite upbeat about the forthcoming initial public offering, as well as the other power ventures by Perera because of the broadbasing of ownership and the addition to the national power grid. At present Erathna adds nine megawatts to the grid and when all the power projects are developed, it will be approximately 45 megawatts to the grid," an industry analyst said. He said that broadbasing the ownership of Erathna is a very prudent move, because of the sensitive situation at the Ceylon Electricity Board with regard to privatisation. |
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