Vidullanka inks agreement with Uganda power grid (Daily Financial Times (Sri Lanka))

Vidullank Plc said its subsidiary had entered into a Power Purchase Agreement (PPA) with Uganda’s energy authority to supply power from a 6.5 Mega Watt plant to Uganda’s national electricity grid.

Vidullank Plc’s subsidiary, Muvumbe Hydro (U) Ltd. has entered into the PPA with Uganda Electricity Transmission Company Ltd. (UETCL) on 28 July 2015, the company said in a stock market disclosure.

Uganda Electricity Transmission Company is a government-owned company responsible for the power purchase and transmission in Uganda.

According to the agreement entered, Muvumbe Hydro (U) Ltd. is entitled to develop the 6.5 MW Muvumbe SHPP and to sell the generated power to the national grid for a period of 20 years commencing from the date of commissioning of the power plant to the national grid.

Muvumbe SHPP is the initial foreign project of Vidullank Plc’s journey towards diversification. The company also expects to enter into an implementation agreement (IA) with the Ugandan Government represented by its Ministry of Energy and Mineral Development in the near future.