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| Description of company and purpose of project |
Eco-Power Ltd was incorporated in 1998, with the sole purpose of implementing and operating mini-hydro power projects. Since then it has commissioned 17.3 MW of installed capacity which it owns.
Eco Power is implementing CDM projects based on run-of-river hydro generation assets that are displacing fossil fuel based generation in the Sri Lankan grid (mostly diesel and fuel oil). The total installed capacity of the projects is presently 12.6 MW (made up of 4 plants whose capacity range from 2.4-4.8 MW). The three remaining projects (3 to 9.9 MW) are in different phases of development and will enter operations between January 2006 and June 2007, at which time final installed capacity will be 31 MW. These projects when bundled together will enable Eco Power to sell up to an estimated 115,000 tonnes/year of Certified Emissions Reductions (CERs) under the Clean Development Mechanism (CDM) of the Kyoto Protocol |
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| Project sponsor and major shareholders of project company |
Eco Power is a Sri Lankan owned company which has no foreign technical collaborators and which has developed its own in house technical capabilities for designing, constructing and operating small hydro power plants. It was until very recently controlled by Metropolitan Resource Holdings Limited (MRH), a publicly quoted Sri Lankan company which was part of the well know Sri Lankan Metropolitan Group controlled by the Ambani family of Sri Lanka. MRH's investments were in the plantation sector through Bogawantalawa Plantations Limited and in the small hydro power sector through Eco Power. In a restructuring of MRH that took place recently the plantation interests of MRH were separated from the small hydro power interests and the Eco Power share holding of MRH was transferred to a separate company, Eco Power Holdings Limited (EPH), with the shareholders in MRH receiving the same percentage of shares in EPH as they held in MRH.
At present 90% of Eco Power's shares are owned by EPH while the balance 10% is owned by company management. EPH is a Sri Lankan company which is 40% foreign owned and 60% locally owned. The largest individual shareholder is a Sri Lankan national with a 22.9% stake. Other large shareholders in EPH include Sri Lankan companies Ocema Investment Company (Pvt) Ltd. with 17.6% and Metrocorp (Pvt) Ltd. with 14.8%. |
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| Total project cost and proposed IFC investment |
| The value of INCaF’s contract or emissions reductions purchase agreement to purchase CERs is expected to be in the range of USD 3.5 – 4.5 million, payable in installments on annual delivery of CERs (generated through to the end of 2012) to the CDM registry account of the Netherlands. |
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| Location of project and description of site |
Environmental documentation will be made available at the following locations:
1. Hapugastene I & II: - located on Hapugastene tea and rubber
estates, Ratnapura District - Longitude N 6o 42.1' / Latitude E 80o 30.3'
2. Hulu Ganga I & II: located in Kandy District near the town of Panwila -
Longitude N 7o 23.5' / Latitude E 80o 44.8' (Phase I) and Longitude N
7o23.3' / Latitude E 80o 44.5' (Phase II)
3. Magal Ganga: located in Kegalle District, on Maliboda estate, west of
the town of Deraniyagala. Longitude / Latitude: N 60 54.6' / E 800 22.
4. Alupola Project: located in Ratnapura District on Alupola
estate. Longitude / Latitude: N 60 41.5' / E 800 32.5'
5. Badulu Oya Project: located in Teldeniya Divisional Secretariat
Division, north east of the city of Badulla, Longitude / Latitude: N 70
8.5' / E 810 0.6' |
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| Project Development Impact and IFC's Role |
IFC’s goal is to encourage emerging market private sector participation in the carbon market by providing value-added services to support project’s long term sustainability. As a global investor and advisor committed to developing sustainable private sector in emerging markets, IFC is well positioned to assist project sponsors to participate in the carbon market
IFC’s experience and knowledge in evaluating and financing private sector projects in developing countries is leveraged to structure contracts that minimize the risks associated with the delivery of CERs from projects. The sale of CERs from its small-hydro plants allows Eco Power to partially fund its investments in expansion of its renewable energy capacity. This possibility allows Eco Power to explore new financing sources of reasonable terms to help expand its capacity. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising the company’s operational units at Hulu Ganga – I, Alupola & Hapugastenne and proposed/under construction sites at Magal Ganga, Hulu Ganga – II .
The following potential environment, health and safety and social aspect of the project (s) were analyzed: environmental, social, and health and safety management systems; permitting requirements; source and volumes of water required including efforts to minimize water use; source of power and energy, including fuel storage if applicable; air emissions from existing and new sources and corrective actions needed to ensure compliance with local and World Bank Group emissions limits; ambient air quality and noise impacts on nearby receptors; recycling and treatment of process effluent and waste water; hazardous materials management; occupational health and safety programs and performance; fire and life safety and emergency response; minimization, recycling and disposal of solid and hazardous wastes; biodiversity conservation; involuntary resettlement and R&R; corporate social responsibility efforts, including HIV/AIDS awareness; and timely reporting on environmental and social performance to IFC.
Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
Documents will be located at Eco Power’s head office and locally at the following addresses:
Hapugastenne Power House,
Hapugastenne Rubber Estate;
Gallella Alupola Power House,
Alupola Estate, Alupola;
CECB Magal Ganga Project Office,
Maliboda Estate,
Nakkawita;
Hulu Ganga Sub Post Office,
Hulu Ganga Town
Divisional Secretariat,
Meegahakiula via Badulla. |
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| To contact the project company, please write to: |
Dr Romesh Dias Bandaranaike
Eco Power (Private) Limited –
21 Gower Street, Colombo 5, Sri Lanka
Tel: 94 (11) 4513 470/1/2
Email: rdb_ecopower@sltnet.lk |
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