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POTENTIAL INVESTMENT PROJECTS WITHIN ELPITIYA PLANTATIONS PLC
Elpitiya Plantations PLC consist of 13 estates, situated in the Up, Mid and Low country regions owned and managed by
Aitken Spence Plantation Managements Ltd. These estates are cultivated with Tea, Rubber, Oil Palm, and Coconut by
Elpitiya Plantations PLC (EPP), and EPP was taken over by Aitken Spence Plantation Managements Ltd (ASPM) from M/s
Carsons in 1997.
After the take over by ASPM, the company has undertaken good business diversification projects. The company has
recently ventured into other areas such as Oil Palm Milling, Hydro Power, Furniture Manufacturing, Eco Tourism,
Cinnamon Planting and even Timber Tree Planting. These diversification projects have been considered with the
objective of diluting the company’s dependence on its core products. The company has a local tea brand called “Harrow
– Ceylon Choice” available in Black Tea and Green Tea.
The company has categorized its estates into 4 clusters, which are overlooked by 4 GMs. Two clusters each for Up
Country and Low Country. The head office of EPP is located at No: 73/3, Ward Place, Colombo 07.
EPP has recently identified few more potential business projects within its estate lands, especially in Mini Hydro Power
Generation. Details of which are as follows;
Project 1:
EPP recently found three more mini hydro power sites within its Pundaluoya cluster, details of which are as follows;
1. Proj1a: Upper Dunsinane MHPP – 600kW
2. Proj1b: Upper Sheen MHPP – 400kW
3. Proj1c: Dunsinane Cottage MHPP – 900kW
Out of the above three projects, EPP have already obtained provisional approval (PA) from SLSEA (Sri Lanka Sustainable
Energy Authority) and the LOI from the CEB (Ceylon Electricity Board) for two projects (1&2). EPP is now seeking for
investors to develop the projects and EPP will undertake the followings;
• Obtaining all necessary approvals including CEA approval and the Energy Permit.
• Assisting the buyer for all CEB matters up to the preparation works of signing the SPPA.
• EPP will do the Project Management including the Project Consultancy on‐behalf of the buyer.
• EPP will undertake the O&M activities of the projects for a very nominal fee.
Project Details
Description Capacity Annual
Generation
Estimated Project Cost Estimated Annual Revenue Project Returns
LKR USD(‘000) LKR USD (‘000) Project IRR Equity IRR
Proj1a 600kW 2.096GWh 100Mn 870 27.5Mn (Y1) 240 19.44 21.92
Proj1b 400kW 1.581GWh 67Mn 583 20.8Mn (Y1) 181 21.49 26.13
Proj1c 900kW 3.435GWh 150Mn 1,304 45.1Mn (Y1) 392 23.95 30.83
* 1 USD= 115LKR
Project 2:
The Sheen MHPP of 560kW capacity, which was commissioned in October 2008, is generating electricity to National
Grid. The annual generation of the project would be 2.558GWh with an annual income of Rs. 33.9Mn (Y1). Since the
commissioning, this project has been ranked in the first 15 projects, out of all grid connected Mini‐Hydro Power projects,
with respect to the monthly plant factor. EPP is now willing to sell this project to a possible investor.
PROPOSAL: These projects and several others will be available to investors who are willing to
invest in EPP.
CEB New Tariff Rates
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20
Hydro 15.73 15.85 15.99 16.14 16.29 16.46 16.65 16.85 8.04 8.27 8.52 8.80 9.09 9.41 9.75 8.51 9.10 9.73 10.41 11.14
Wind 24.99 25.19 25.40 25.63 25.88 26.15 26.45 26.76 12.76 13.13 13.53 13.96 14.43 14.93 15.47 11.42 12.24 13.13 14.08 15.11
Note:
1. Project cost doesn’t include any sale margin and land value.
2. Project Capacity, Generation have been based on the pre‐feasibility study and it is recommended to do the
Feasibility level comprehensive study (includes Professional Hydrology Report, Geo‐technical Report and
Final Budgeted BOQ based on final design drawings & machinery selections).
Elpitiya Plantations PLC consist of 13 estates, situated in the Up, Mid and Low country regions owned and managed by
Aitken Spence Plantation Managements Ltd. These estates are cultivated with Tea, Rubber, Oil Palm, and Coconut by
Elpitiya Plantations PLC (EPP), and EPP was taken over by Aitken Spence Plantation Managements Ltd (ASPM) from M/s
Carsons in 1997.
After the take over by ASPM, the company has undertaken good business diversification projects. The company has
recently ventured into other areas such as Oil Palm Milling, Hydro Power, Furniture Manufacturing, Eco Tourism,
Cinnamon Planting and even Timber Tree Planting. These diversification projects have been considered with the
objective of diluting the company’s dependence on its core products. The company has a local tea brand called “Harrow
– Ceylon Choice” available in Black Tea and Green Tea.
The company has categorized its estates into 4 clusters, which are overlooked by 4 GMs. Two clusters each for Up
Country and Low Country. The head office of EPP is located at No: 73/3, Ward Place, Colombo 07.
EPP has recently identified few more potential business projects within its estate lands, especially in Mini Hydro Power
Generation. Details of which are as follows;
Project 1:
EPP recently found three more mini hydro power sites within its Pundaluoya cluster, details of which are as follows;
1. Proj1a: Upper Dunsinane MHPP – 600kW
2. Proj1b: Upper Sheen MHPP – 400kW
3. Proj1c: Dunsinane Cottage MHPP – 900kW
Out of the above three projects, EPP have already obtained provisional approval (PA) from SLSEA (Sri Lanka Sustainable
Energy Authority) and the LOI from the CEB (Ceylon Electricity Board) for two projects (1&2). EPP is now seeking for
investors to develop the projects and EPP will undertake the followings;
• Obtaining all necessary approvals including CEA approval and the Energy Permit.
• Assisting the buyer for all CEB matters up to the preparation works of signing the SPPA.
• EPP will do the Project Management including the Project Consultancy on‐behalf of the buyer.
• EPP will undertake the O&M activities of the projects for a very nominal fee.
Project Details
Description Capacity Annual
Generation
Estimated Project Cost Estimated Annual Revenue Project Returns
LKR USD(‘000) LKR USD (‘000) Project IRR Equity IRR
Proj1a 600kW 2.096GWh 100Mn 870 27.5Mn (Y1) 240 19.44 21.92
Proj1b 400kW 1.581GWh 67Mn 583 20.8Mn (Y1) 181 21.49 26.13
Proj1c 900kW 3.435GWh 150Mn 1,304 45.1Mn (Y1) 392 23.95 30.83
* 1 USD= 115LKR
Project 2:
The Sheen MHPP of 560kW capacity, which was commissioned in October 2008, is generating electricity to National
Grid. The annual generation of the project would be 2.558GWh with an annual income of Rs. 33.9Mn (Y1). Since the
commissioning, this project has been ranked in the first 15 projects, out of all grid connected Mini‐Hydro Power projects,
with respect to the monthly plant factor. EPP is now willing to sell this project to a possible investor.
PROPOSAL: These projects and several others will be available to investors who are willing to
invest in EPP.
CEB New Tariff Rates
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20
Hydro 15.73 15.85 15.99 16.14 16.29 16.46 16.65 16.85 8.04 8.27 8.52 8.80 9.09 9.41 9.75 8.51 9.10 9.73 10.41 11.14
Wind 24.99 25.19 25.40 25.63 25.88 26.15 26.45 26.76 12.76 13.13 13.53 13.96 14.43 14.93 15.47 11.42 12.24 13.13 14.08 15.11
Note:
1. Project cost doesn’t include any sale margin and land value.
2. Project Capacity, Generation have been based on the pre‐feasibility study and it is recommended to do the
Feasibility level comprehensive study (includes Professional Hydrology Report, Geo‐technical Report and
Final Budgeted BOQ based on final design drawings & machinery selections).
