Tuesday, February 2, 2016

Japan's Sojitz buys Sri Lanka power producer from AES

ECONOMYNEXT - Japan's Sojitz Corporation has bought a 90 percent stake in AES Kalanitissa (Pvt) Ltd, a 163 MegaWatt independent power producer in Sri Lanka connected to state-run Ceylon Electricity Board.

By taking control of the IPP, Sojitz said it wanted to acquire "management knowhow including on-site operation and maintenance of power plants,"

Sojitz will hedge country risk associated with foreign investment insurance provided by Nippon Export & Investment Insurance (NEXI).

Sojitz is buying out AES, a US power firm. The balance 10 percent of the IPP is held by Sri Lanka-based Hayleys group.

AES Kelanitissa which started operations in 2003 has a 20-year power purchase agreement with the CEB which runs out in 2023. 

Sojitz also has a stake in Asia Power, a 51MW thermal power plant. Its 20-year PPA started in 1998.

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