Vidullanka subsidiary enters power purchase agreement with Ugandan govt.

6 August 2015 04:19 am Views - 1222

Muvumbe Hydro Limited, a subsidiary of mini hydro developer Vidullanka PLC, has entered into a power purchase agreement with state-owned Uganda Electricity Transmission Company Limited (UETCL), the parent company informed the Colombo Stock Exchange.

According to the agreement entered, Muvumbe Hydro is entitled to develop the 6.5MW Muvumbe small hydropower project and sell the power generated for a period of 20 years commencing from the date of commissioning of the power plant to the national grid. “The company expects to enter into an implementation agreement with the government of the Republic of Uganda represented by its Ministry of Energy and Mineral Development in the near future,” a company filing said.

This is Vidullanka’s first overseas venture and it will be a stepping stone for the firm to expand business further into East Africa, a region rich in hydro resources.