Hatton National Bank, Sri Lanka
RMA was selected as the Lenders’ Engineer by a consortium of Sri Lankan banks financing the construction of 250 MW of Independent Power Plant (IPP) capacity in four power plants in Sri Lanka. The projects were promoted by established Sri Lankan Companies. The power plants use diesel engines operated of heavy fuel.
The role of RMA was to conduct due diligence on all the technological aspects of the four power plants. RMA assisted the Banks to review the Power Purchase Agreement, Implementation Agreement and the Fuel Supply Agreement. RMA conducted supervision of the erection, testing and commissioning of the power plants on behalf of the Banks.
The total investment on the power plants were about 160 million US$, of which about 110 million US$ was financed through a syndicated long-term loan by the Consortium of Banks. The first power plant entered commercial operation in March 2002. The second power plant entered operations in April 2005. Power plants are operated by Wartsila of Finland under an Operation and Maintenance contract with ACE Power Generation and Caterpillar Power Generation Systems Ltd. The projects were developed on a Build, Own and Operate (BOO) basis under a 10-year Power Purchase Agreement with Ceylon Electricity Board.