Vidullanka expanding to South America with $ 12.8 m EPC contract in Guyana

Tuesday, 15 November 2022 00:56 - - {{hitsCtrl.values.hits}}

Vidullanka PLC said yesterday it was expanding to South America by winning a bid for an Engineering, Procurement and Construction (EPC) contract from the Republic of Guyana to build two mini hydro power plants with a total capacity of 2.2 MW.

The contract undertaken from the Guyana Energy Authority is valued at approximately $ 12.8 million and it is funded by a Multilateral Development Bank.

A pioneer in the renewable energy industry in Sri Lanka Vidullanka PLC stands out as the first listed renewable energy company in Sri Lanka to engage in an overseas EPC contract. Vidullanka’s entry into the overseas renewable energy EPC market marks an important milestone for the listed renewable energy companies in the stock exchange. Vidullanka’s entry into the EPC space internationally, comes after gaining years of experience in developing its own power plants in Sri Lanka, starting with Batathota MHPP in 2007. The company has so far developed ten mini hydro power plants in Sri Lanka and two in Uganda, with its own engineering arm.

Its stunning track record backed by the in-house talent pool have played important roles in the company making inroads in gaining the ability to compete internationally. The contract also stands to benefit the group with improved overseas income, strengthening its position over the exposure to Ceylon Electricity Board.

For the six months ended 30 September 2022, Vidullanka disclosed that over 65% of the Rs. 1.78 billion revenue of the company is brought in by its overseas operations. This is also reflected in the profits as the overseas segments contributed Rs. 531 million to the company’s profit after tax prior to the group adjustments.

Given the unique composition of the company among the industry peers, with overseas income accounting for the largest share of Revenue and Profits, the company stands resilient against the challenges posted by the CEB payment delays and increased costs of local funds.

Vidullanka’s vast experience in hydro power projects and its unrivalled in-house engineering expertise proved very influential in overcoming other international bidders who also participated in the tender process.

The company has therefore been successful in utilising its resources not only on its own projects but also to provide its services to other developers in the industry.

The company is currently involved in contract negotiations with the Guyana Energy Authority and due to convene an EGM if any requirement arises.

This achievement further cements Vidullanka’s position as a pioneer in Renewable Energy in Sri Lanka. It boasts a portfolio of 19 operational projects of hydro, dendro and solar power, with two hydro power projects established in Uganda.