HNB facilitates financial closure of Sri Lanka’s first waste-to-energy plant

• Syndicated term loan of Rs. 9 b Waste-to-energy plant will convert all of Colombo Municipality’s solid garbage to generate 10 MW of power Syndicated term loan of Rs. 9 b 
• Waste-to-energy plant will convert all of Colombo Municipality’s solid garbage to generate 10 MW of power 

 Hatton National Bank, as the lead arranger of the syndicated loan, together with People’s Bank, DFCC and Bank of Ceylon, signed off loan agreements to finance the setting up of Western Power Company’s waste to energy plant, the first of its kind in Sri Lanka. 

A subsidiary of Aitken Spence PLC, Western Power Company has scheduled the commission of the 10 megawatt facility by 2020 in Kerawalapitiya, Muthurajawela. It will consume all of Colombo Municipality’s solid garbage.

Designed to use 700 tonnes of municipal solid garbage on a daily basis, the Company has already made arrangements with the Colombo Municipal Council (CMC) for collection – the preparatory work of which was the need for segregation of household garbage to solid waste and recyclable piles – pre-requisites of an efficient and effective waste-to-energy system. 

The syndicated facility arranged by HNB is for a total sum of Rs. 9 billion with Bank of Ceylon, DFCC and People’s Bank joining in as the co-lenders.  

HNB Corporate Banking DGM Ruwan Manatunga signed off on behalf of the lead financier, together with People’s Bank Head of Corporate Banking Aruni Goonetilleke, DFCC Executive Vice President / Chief Risk Officer Palitha Gamage and BOC Corporate Banking DGM Russel Fonseka at the HNB Towers. 

“We are proud to play a lead role in financing a project of national priority,” expressed Ruwan. “Being a part of a solution to Colombo’s growing issue of solid waste management fits in with the Bank’s role in social and environmentally sustainable solutions.”

Ruwan went on to say: “The recovery of energy from waste has become crucially important with waste-to-energy (WtE) power generation, one of the world’s most effective and green modes of managing disposal of garbage. Our business, too, is evolving in response to this global trend.”

Head of Project Financing Majella Rodrigo acknowledged the cooperation and commitment of all lenders to the syndication in achieving this all-important milestone. He noted: “HNB, like so many of our clients, recognizes that addressing environmental challenges is not only a necessity, but a compelling economic opportunity. We already have an established presence in environmentally conscious businesses, and we are delighted to be able to build on our expertise to help meet the booming demand for green finance. We’re excited to be at the forefront of something so game-changing.” Expressing his gratitude on behalf of the promoters of Western Power Company, Aitken Spence PLC Deputy Chairman and Managing Director Rajan Britto appreciated all the lenders for their tireless efforts to achieve the successful financial closure of this transaction.