Sri Lanka’s LVL Energy Fund funds construction of thermal power plant in Bangladesh
LVL Energy Fund of Sri Lanka has reportedly remitted funds amounting to US$ 8 million recently for the construction of a 114 MW thermal power plant in Feni, Bangladesh on a Build-Own-Operate basis.
Local media reports state that the latest venture is expected to increase the company’s investment to US$ 16 billion.
A corporate disclosure published on the company at the Colombo Stock Exchange (CSE) has stated that the promoter of the project is Lakdhanavi Limited and the company’s shareholding in Feni Lanka Power Limited will be approximately 26 percent.
Accordingly, the project is expected to commence operation in September this year and Feni Lanka Power Limited has entered into a 15-year power purchase agreement with the Bangladesh Power Development Board.
The company had earlier invested US$ 8 million in two other thermal power projects of the capacity of 52MW each in Bangladesh, which were also promoted by Lakdhanavi Limited.
OSL take:
The funds remitted by Sri Lanka’s LVL Energy Fund to construct a thermal power plant in Bangladesh are yet another instance that shows the growth and strength of the local private sector. A look at the expansion of local business institutions into international economies shows the business conduciveness of the Sri Lankan economy. Sri Lanka is constantly improving the country’s ease of doing business environment as well. Therefore, foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/23052019/Z_9 |