Ulhitiya-1 Eco Siphon

Hydro Power Station

400kW Small Hydro Power Project on existing Irrigation canal

using Patented Canadian Eco Siphon Hydro Technology (Pilot
Project)
Documents Enclosed with the Pre-feasibility Report:

a) Application Form

b) Certification by the Consultant (Format F2X)

c) Summary of the Pre-feasibility study (format F2)

d) Annex to the Pre-feasibility Report: Land Resource Requirements

e) Checklist of Contents of the Pre-feasibility Study (Format F1)

f) Checklist of important attributes to be considered

g) Proof of funds Letter

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Contents
Documents Enclosed with the Pre-feasibility Report: ........................................................................ 2
a) Application Form .................................................................................................................................................... 2
b) Certification by the Consultant (Format F2X) ......................................................................................................... 2
c) Summary of the Pre-feasibility study (format F2) .................................................................................................. 2
d) Annex to the Pre-feasibility Report: Land Resource Requirements ....................................................................... 2
e) Checklist of Contents of the Pre-feasibility Study (Format F1) ............................................................................... 2
f) Checklist of important attributes to be considered................................................................................................ 2
g) Proof of funds Letter .............................................................................................................................................. 2

1. Executive Summary .............................................................................................................. 4

1. Profile of the Applicant ......................................................................................................... 4
2. Site Description .................................................................................................................... 5
Site Survey........................................................................................................................................... 7
The summary details of the site:......................................................................................................... 9
Stream Flow Analysis .......................................................................................................................... 9
Socio Economic Background of the Area .......................................................................................... 10
3. Technology – Eco Siphon Hydro Power Station (Patented Canadian Technology) .................. 12
4. Preliminary Plant Design ..................................................................................................... 14
General layout of the power plant ................................................................................................... 14
5. Environmental Considerations ............................................................................................ 16
6. Project Costs ...................................................................................................................... 18
Capital Cost of the Project, Debt Equity Financing and Project Parameters .................................... 18
7. Financial Analysis ............................................................................................................... 21
8. Project Development Plan .................................................................................................. 23
Project implementation schedule ..................................................................................................... 23

Table 1: Canal Flow Data ...................................................................................................................................... 9

Table 2: Environmental Impact Summary ............................................................................................................ 16
Table 3: Project Cost, Funding and Project parameters ....................................................................................... 18
Table 4: O&M Expenditure ................................................................................................................................... 19
Table 5: Project Loan and Debt Service Schedule................................................................................................. 20
Table 6: Projected Profit & Loss Statement .......................................................................................................... 21
Table 7: Projected Cash Flow Statement .............................................................................................................. 22
Table 8: Financial Ratios ....................................................................................................................................... 22
Table 9: Project Implementation Schedule .......................................................................................................... 23

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Ulhitiya-1 Eco Siphon Hydro Power Station
Small Hydro Power Project using patented Canadian Eco Siphon Technology

1. Executive Summary

This is a Pilot Project to use Canadian Eco Siphon Hydro Power Stations on existing irrigation canals
in Sri Lanka. This technology is in use in Canada very successfully for over 25 years and the engineers
of the Canadian technology provider visited a number of potential sites in Sri Lanka and decided to
do the Pilot Project at this location on the Ulhitiya Canal Branch 2 (Drop 1), in the Ampara District in
Dehiattakandiya Divisional Secretariat division.

The project aims to promote development of clean and renewable energy sources for public
utilization using innovative and patented Canadian Eco Siphon Hydro Technology. The proposed
hydroelectric plant will consist of Eco Siphon Hydro Power Station, Power House and the
Transmission line. The Project involves no new water diversion or water storage and does not modify
the timing of water diversion or storage within the canal in any way.

The estimated project cost is Rs. 83.7 million. The Installed capacity will be 400kW and the estimated
electricity generation is 1.8 million kWh per year.

This is the first time in Sri Lanka that this Eco Siphon Hydro Technology will be used for hydro electric
power generation. This will open doors for a new area in developing clean energy in the country
using existing infrastructure, without having to alter the structure and with having no impact on
environment and the water flow.

The Company involved in this project is a joint venture between a local Company and a Canadian
based Company in Sri Lanka which has rights for this patented Eco Siphon Hydro technology.

1. Profile of the Applicant

The proposed hydro power project, which is to be implemented by Chelina Ulhitiya Hydro (Private)
Limited is a joint venture between SRI Renewable (Pvt) Limited, a Canadian origin local Company and
Chelina Eco Power (Private) Limited.
The Company was founded to assist in developing Sri Lanka's abundant micro and mini hydro
resource opportunities. As an emerging nation with ever increasing grid usage, expanding power
generation is a national concern.

The Company, in collaboration with a Canadian manufacturer supplies packaged hydro solutions
which are both economically and environmentally viable. We pay close attention to the water
systems in which we operate, and work diligently with local authorities to ensure a harmonious
relationship with all stakeholders.

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 2. Site Description
The proposed project will be located on an existing Canal Structure of the Mahaweli Authority,
situated at Ulhitiya Branch Canal – water discharge from Rathkinda to Mahaweli System C
Farmlands. Figure 1, depicts below the location of the proposed Gate that will be utilised as the weir
for the project (Ulhitiya Canal Branch 2 Gate 1 (Drop-1)).

Figure 1

Figure 2, below shows the Ulhitiya Canal Branch 2 – gate 1 (Drop-1) water flow downstream after
discharging through the gates.

Figure 2

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Figure 3, below shows the foot bridge over the gates and the water flow into the weir and to the
gates from the canal upstream.

Figure 3

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Site Survey
Error! Reference source not found., below depicts the site survey.

Figure 4: Ulhitiya Canal Branch 2 – Drop 1 PLAN

Figure 5: Ulhitiya Canal Branch 2 – Drop 1 FRONT ELEVATION, below depicts the site survey

Figure 5: Ulhitiya Canal Branch 2 – Drop 1 FRONT ELEVATION

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The summary details of the site:

Existing Irrigation Canal – water discharge from the Rathkinda

Name of the stream/ river
Tank.
Village Bakmeedeniya

Administrative division (DS) Dehiattakandiya

District Ampara

Gross head 4.2 m

Net head 4.0 m

Weir / Power House (close to 7040” 44.48” N
Weir) (latitude/longitude) 81001 43.26 E
Daily stream flow rates 10.0 m3/s (approximately 65% of the days in a year)

Stream Flow Analysis

Table 1: Canal Flow Data, below shows the flow data in the Ulhitiya Canal Branch. This is regulated
flow issued to the farmers in the Mahaweli System ‘C’. Based on this data, it can be established that
on average 250 days per year water will be discharged at a minimum rate of 10.0 m3/s.

Table 1: Canal Flow Data

Ulhitiya Canal Branch 2 Gate 1 (Drop 1)

Water Issues - Number of Days per Month (Minimum water issue is 10.0 m3 / s)
Total no
Year\Mth JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC of days / As a %
Year
2003 31 15 10 31 30 31 20 3 30 31 232 64%
2004 31 28 10 11 30 31 31 10 19 31 232 64%
2005 31 28 15 10 31 30 31 25 11 30 31 273 75%
2006 31 28 26 30 31 30 31 31 30 25 293 80%
2007 10 31 30 31 25 11 30 31 199 55%
2008 31 28 2 9 31 30 31 31 10 30 31 264 72%
2009 31 28 6 10 30 31 31 5 15 31 218 60%
2010 31 28 17 8 31 30 31 31 5 16 30 31 289 79%
2111 31 15 29 31 30 31 5 5 31 208 57%
2012 31 29 20 30 31 30 31 202 55%
2013* 31 28 20 79 22%
2013 - Data available only for the first 3 months.
Source: Mahaweli Regional Office - Dehiattakandiya
 Avg Monthly Water Discharge (Days per Month)

31 30 31 31

26 26 26 24

15 16 15
15

Figure 6: Average Monthly Water Discharge (Days per Month)

The proposed hydro power station is based on an existing irrigation canal which is dependent on
regulated water released to the farmers and other water users, and, therefore the normal data such
as rainfall data, catchment area, etc., are not applicable in this project and solely the project is
dependent upon the historical flow data of the canal, which is given above.

Socio Economic Background of the Area

The main town closest to the project, about a km from site is Dehiattakandiya, a new town of
Mahaweli Development Scheme which was established nearly 30 years ago under the accelerated
Mahaweli Development Project as a town to serve new irrigational settlements in downstream
areas. It is situated in the dry zone, along the Kandy -Polonnaruwa highway, in close proximity to a
historically and culturally significant town – Mahiyanganaya.

Dehiattakandiya has been designed as a service centre' for several hamlets and villages, along with
Girandurukotte for the zone 'C of the Mahaweli settlements. Dehiattakandiya Town is built entirely
on undisturbed land of vegetation. The land is almost flat except for mild slopes, and hears no
significant geographical features.

Primary occupants of the area are farmers, who have come from all over the country. There are
other supportive families as well, who represent about one third of the agricultural community.
Furthermore, the town receives about as much seasonal, immigrating labourers. Majority of the
population of Dehiattakandiya as a whole, are Sinhala Buddhist, who shares a common interest in
agriculture. Therefore, this farmer community shows cultural similarities despite their regional
variations and celebrates cultural, religious and seasonal agricultural festivities together in the town.
The area houses a very low dense agricultural community and acts as the 'centre' for their needs and
interactions wherein their need for buying seeds, fertilizer and technical advised as well as selling
their crops are satisfied.

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Several thoughtful planning and agricultural contributions in design and detailing of the town could
be identified on observation such as public squares, market places, civic centre where high public
gathering is intended, public transport terminal and major waiting areas where accommodation of
major transitional activities are intended, main bazaar, recreational areas where generation of high
public movements is intended.

The Town Dehiattakandiya can primarily be seen us a concentration of activities along a looped road
that connects the Kandy - Polonnaruwa highway. Hence, the town has two access roads from the
highway focusing on two squares, namely North Square and South Square, which in turn connect the
main road of the town which lies parallel to the Kandy - Polonnaruwa highway. These two squares,
lying along the main street of the town, are focused on a Central Square from which another street
leads away to the interior of the settlements. North and South squares are surrounded by
administrative and institutional buildings, while the Central Square is surrounded by public
amenities.

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 3. Technology – Eco Siphon Hydro Power Station (Patented Canadian Technology)
The Eco-Siphon Hydro technology relates to low head hydro power plants where the available head
of water is between about 2 to 7 meters. This technology provides an inexpensive method of
extracting low head energy from rivers and streams where there is a drop over distances up to 100
meters. This is commonly found at dams, canals, low waterfalls and river rapids. The benefits of
developing a site using the Eco-Siphon Hydro technology are:
 It eliminates the high cost of associated civil works and site assembly.
 It eliminates the high operational costs associated with cleaning screens (trash racks) that
are used to limit the passage of debris into the turbine.
 It eliminates the biological damage done to fish passing through the turbine.
Figure 7, shows the patented (US-4,465,430 and GB-2 430 984) water turbine casing mounted in a
turbine house, with the turbine’s intake facing downward toward a trash rack system used to screen
the incoming water.

Figure 7

The house sits in the head pond on 4 adjustable legs. The water conveyance system is submerged in
the head pond and in the tailrace to form a barrier to the entrance of air. Water is drawn into the
turbine through suction generated by a pump until the turbine begins rotation. At this time the
suction pump is no longer needed as the remaining air is mixed with flowing water until all the air is
expelled into the tailrace. The turbine uses a low speed, low velocity fish-friendly runner operating
under a vacuum at the top of the siphon loop formed by the intake, turbine and discharge piping.
The application of the Eco-Siphon Hydro technology is governed by two factors, the size of the
turbine and the elevation between the head pond and tailrace.
The practical application of the technology is limited to about 7 meters in stations using turbines less
than 800 mm, and to 6 meters when using turbines more than 1.5 meters in diameter. The length of
the discharge piping system is limited by friction losses between the water and the piping. This can
reduce the suction on the turbine to the point that the reduction in energy does not leave enough

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velocity in the water column to convey air through the system. Which means elbows must be
avoided if the discharge piping is relatively long.
The supports for the station are adjustable to allow for an irregular bottom and to allow the station
to be elevated for access to the trash racks or excessive rises in the water level. Lifting the station is
facilitated by the use of a flexible coupling in the discharge piping that can be readily removed. The
house containing the turbine is constructed to resist the entry of water and is self draining. The
housing is coated steel to resist corrosion.
The skirt that projects into the water, and the trash racks, are made from stainless steel. The house
sits a short distance into the head pond in order to deter the entry of air and surface debris. The
trash racks are placed above the surface of the water flow to aid in the removal of debris when the
turbine is not operating and to prevent the accumulation of marine growth when the system is shut
down for an extended period. In some cases due to varying levels it may be desirable to submerge
the trash racks. Having horizontal trash racks greatly reduces the depth of head pond needed to
draw water into the turbine house, and reduces the infiltration of air into the piping system.
The siphon is broken by the admittance of air through a valve, allowing the turbine to be dry when
not in operation. An expensive turbine isolation valve is not required and there is ready access for
maintenance and repairs. An elastic coupling is employed between the turbine discharge and the
piping system conveying the water to the draft tube. This coupling eliminates vibrations in the
discharge piping from reaching the turbine house and facilitates access to the discharge of the
turbine for maintenance and repairs. To shut the station down, air is admitted to the top of the
turbine. Water in the turbine and intake system discharges downward toward the trash racks. The
water moving opposite to the normal direction of flow will clean the trash racks of most
accumulated debris. Additional trash will fall off the racks when they are exposed to air as the wet
debris will be pulled naturally downward. The technology reduces the civil works required on site to
the support of the discharge piping system, and any excavation that may be required for the draft
tube and the creation of a small pond under the station. All the major components except the
supports for the discharge piping can be manufactured under ideal conditions at a factory and
shipped assembled to site.
The Eco-Siphon Packaged Hydro Station’s electrical system can be supplied for on or off grid
connection. In the off grid application, the connection is made to the Station’s circuit
breaker/isolation switch. Station power can be single or three phase with voltages from 115 to 600.
Control of the Station is by a programmable logic controller (PLC). The PLC has inputs for mechanical
and electrical parameters to allow for the automatic generator protection and alarm system. The
PLC also controls the start-up and shut-down system as well as sensing blockages of the trash rack,
internal and external temperatures and water levels. All of this information is available at the Station
or remotely through wire or wireless connections. In an off grid application, the PLC controls the
frequency of the station through an artificial load system; this balances the demand for power from
the external loads with an artificial internal load to control the speed of the turbine/generator. The
internal artificial load is water cooled heating elements in the intake system that can be accessed in
the dry when the turbine is shut down.

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 4. Preliminary Plant Design

Design flow rate and 5.0 m3/s for each turbine (Totaling 10.0 m3/s)
Gross head 4.2 m
Net head on turbine 4.0 m
Turbine selection Siphon Turbine size 2 x 52 inch unregulated
Generation capacity 155 kW each (2 x 155kW equals 310kW in total)
Monthly generation is 155 x 2 x numbers of hours in the month
where there is 10 m3/s or more.
Gross annual or monthly
Turbine and generator losses - Gross kilowatts available from
generation, losses, and net sales to
10 m3/s and 4.0 m head is approx. 400kW.Total Losses are 21%
the grid
for turbine, generator and drive system. (Turbine losses are
11%, Generator losses 4%, Drive losses 6%).

- Net sales to grid is estimated to be 310 kilowatts

General layout of the power plant

Figure 8: Ulhitiya Canal Gate 1 – Eco Siphon Station - PLAN

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Figure 9: Ulhitiya Gate 2 – Eco Siphon Station SIDE ELEVATION

Note that the water will quickly rise in the canal if the power grid fails and both units shut down
quickly. The water level will reach the bottom of the discharge pipe and start to flow through the
turbines again. The turbines will then free wheel spilling water as needed to keep the head from
rising further.

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 5. Environmental Considerations

The Proposed Project would be constructed on an existing irrigation canal that is used to deliver
irrigation water to Mahaweli System ‘C’ water users, mainly the farmers.

The canal is an essential element of the irrigation conveyance system of the water users. The
proposed project design will preserve the full water conveyance capabilities of the canal and would
therefore not result in any impacts to utilities or infrastructure.

The Proposed Project – Siphon hydroelectric facility would be operated in a run‐of‐canal mode,
meaning that power generation would utilize the water as currently delivered into canal; the
turbines would adjust to any change in flow. Water releases into canal would continue to be made
based on irrigation demand only, as specified by the authorities. There would be no water storage
structures associated with the plant. Because the proposed project does not create any new
impoundment of water it would have no effect on water temperature, nutrients, pH or any other
water quality parameters commonly modified by lake environments. The water quality downstream
of the power plant will be the same as the water quality entering the plant.

Environmental Impact Summary is given below in Table 2:

Table 2: Environmental Impact Summary

Potential Threat to Environment Impact

Loss of wildlife habitat and fauna No Impact
Loss of indigenous flora No Impact
Erosion of the top soil and reservoir
No Impact
sedimentation
Increase in groundwater level No Impact
Deterioration in water quality due to
No Impact
liquid waste
Threat to public health No Impact
The project is likely to attract people seeking employment from the
surrounding areas and beyond. Depending on ability and the
Employment opportunities
availability of jobs, Company is committed to employing local
residents in preference to outsiders.
The project investment will introduce beneficial multiplier effects at
Economic growth local and regional economy. The project will promote the business
of local suppliers and contractors providing goods and services.
Deterioration in groundwater quality No Impact
Water pollution: No Impact
Alteration in stream discharge
No Impact
downstream
Encroachment of aquatic weeds No Impact
When the local people are employed during construction, they will
Skills Transfer to Locals
acquire skills in construction which they can use later in future.
Deterioration in water quality in
No Impact
downstream reaches of the stream
Dust pollution No Impact
Threat to public health No Impact
Loss of Immovable assets No loss of immovable assets is expected
Pollution due to solid waste No Impact

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Displacement of people No Impact
Loss of historical and cultural sites No Impact
The Proposed Project would create a short term demand for
construction related products and services, creating short-term jobs
and supporting local vendors. Once operational, the project would
create approximately 7 direct jobs and would continue to require
Socio Economics
miscellaneous demand for maintenance-related products and
services.
Overall, the project would produce a beneficial impact on
socioeconomic conditions in the project region.

Based on the preliminary analysis of the environmental impacts the proposed project would not
materially affect the quality of the human, social and economic environment of the area.

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 6. Project Costs

Capital Cost of the Project, Debt Equity Financing and Project Parameters

Table 3: Project Cost, Funding and Project parameters

Ulhitiya Hydro Drop 1 - Financials

Estimated Project Cost

Rs. USD (@ 128 )

Electrical & Mechanical (E&M) Cost 57,200,000 446,875

Civil Works 5,000,000 39,063

Interest during Construction (IDC) 2,000,000 15,625

Working Capital 1,000,000 7,813

Approvals & Pre-OP exp. 15,500,000 121,094

Contingencies 3,000,000 23,438

83,700,000 653,906

Project Cost (Rs. Mn) 83.70 0.65 USD million

Proposed means of Funding

Rs. (million) USD

Debt 41.85 326,953 50%

Equity 41.85 326,953 50%

83.70 653,906 100%

Project parameters
Capacity
(Installed) 400 kW
Plant Factor 65%

Generation p.a 1,765,140 kWh

Tariff (Rs./kWh) 16.00 Rs/kWh 0.13 USD / kWh

Total Income (Rs) 28,242,240 Rs. / Year 220,643 USD

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Table 4: O&M Expenditure

Estimated O&M Expenditure

No Salary Total

Office staff 75,000

Technical officer 1 45,000.00 45,000

Clerical staff 1 20,000.00 20,000

Skilled labour 1 25,000.00 25,000

Unskilled labour 1 18,000.00 18,000

183,000

EPF / ETF 20% 36,600

219,600

Utility, Maintenance, etc. 35,000

Insurance & other 30,000

Administration & other O/H 15,000

Total Operational Expenditure per Month 299,600 2,341 USD

Total Operational Expenditure per Year 3,595,200 28,088 USD

Cost Inflation
Estimated Cost inflation per year 2.50% per year

Depreciation computation
Depreciation
Dep per year
Rs. Project Period, Yr p.a. Rs. Mn
Total Project Rs.
Cost 83.7 20 5.00% 4.2 Million

32,695.31 USD

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Table 5: Project Loan and Debt Service Schedule

Project Loan and Debt Service Schedule

Term Loan 41.85 Rs. Million 326,953.13 USD

Repayment period 96 months 8.0 Yrs

Grace period 6 months 0.5 Yrs

Installment p.a. 5.23 mn 40,869 USD

Rate of Interest 15% pa

Proposed Loan Repayment Schedule - Rs. Million

Yr 1 2 3 4 5 6 7 8

Opening balance 41.85 36.6 31.4 26.2 20.9 15.7 10.5 5.2

Average balance 39.23 34.0 28.8 23.5 18.3 13.1 7.8 2.6

Repayments (Capital) 5.23 5.2 5.2 5.2 5.2 5.2 5.2 5.2

Closing balance 36.62 31.4 26.2 20.9 15.7 10.5 5.2 0.0

Interest paid 5.9 5.1 4.3 3.5 2.7 2.0 1.2 0.4

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 7. Financial Analysis

Table 6: Projected Profit & Loss Statement

Profit & Loss account (Rs. Million)

Year ended Yr 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Gross turnover 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2 28.2

Less: Royalty Provision 10% (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8) (2.8)

Operational Expenditure 3% (3.6) (3.7) (3.8) (3.9) (4.0) (4.1) (4.2) (4.3) (4.4) (4.5) (4.6) (4.7) (4.8) (5.0) (5.1) (5.2) (5.3) (5.5) (5.6) (5.7)

PBID 21.8 21.7 21.6 21.5 21.4 21.4 21.2 21.1 21.0 20.9 20.8 20.7 20.6 20.5 20.3 20.2 20.1 19.9 19.8 19.7

Interest (5.9) (5.1) (4.3) (3.5) (2.7) (2.0) (1.2) (0.4) - - - - - - - - - - - -

Profit before depreciation 15.9 16.6 17.3 18.0 18.7 19.4 20.1 20.8 21.0 20.9 20.8 20.7 20.6 20.5 20.3 20.2 20.1 19.9 19.8 19.7

Depreciation (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2) (4.2)

Operating Profit Bef Tax 11.8 12.4 13.1 13.8 14.5 15.2 15.9 16.6 16.9 16.7 16.6 16.5 16.4 16.3 16.2 16.0 15.9 15.8 15.6 15.5

Taxation (assume) 0% - - - - - - - - - - - - - - - - - - - -

Net profit 11.8 12.4 13.1 13.8 14.5 15.2 15.9 16.6 16.9 16.7 16.6 16.5 16.4 16.3 16.2 16.0 15.9 15.8 15.6 15.5

PBID/Turnover (%) 77% 77% 77% 76% 76% 76% 75% 75% 74% 74% 74% 73% 73% 72% 72% 72% 71% 71% 70% 70%
OP/Turnover (%) 42% 44% 47% 49% 51% 54% 56% 59% 60% 59% 59% 58% 58% 58% 57% 57% 56% 56% 55% 55%
Net profit / Turnover (%) 42% 44% 47% 49% 51% 54% 56% 59% 60% 59% 59% 58% 58% 58% 57% 57% 56% 56% 55% 55%
Table 7: Projected Cash Flow Statement

Cash flow statement (Rs. Million)

Yr 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Inflow PBID 22 22 22 22 21 21 21 21 21 21 21 21 21 20 20 20 20 20 20 20

Equity 41.9

Debt 41.9

Total Cash Inflow 83.7 21.8 21.7 21.6 21.5 21.4 21.4 21.2 21.1 21.0 20.9 20.8 20.7 20.6 20.5 20.3 20.2 20.1 19.9 19.8 19.7

Out Flow Project cost 83.7

Loan Int Bank 5.9 5.1 4.3 3.5 2.7 2.0 1.2 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Loan Cap 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Taxation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Cash Outflow 83.7 11.1 10.3 9.5 8.8 8.0 7.2 6.4 5.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net in/(out) flow - 11 11 12 13 13 14 15 16 21 21 21 21 21 20 20 20 20 20 20 20

Opening Bal 83.7 - 11 22 34 47 60 75 89 105 126 147 168 188 209 230 250 270 290 310 330

Closing Bal - 11 22 34 47 60 75 89 105 126 147 168 188 209 230 250 270 290 310 330 350
Table 8: Financial Ratios

Financial Ratios

IRR (Project) 22.9%

IRR (Net) 16.7%
ROE 31.3%
NPV 8,198,582 Rs. 64,051 USD
Pay back 6 Years

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 8. Project Development Plan

Site ownership

The site is owned by the Mahaweli Authority of Sri Lanka (MA). The Company shall submit technical
proposal to Mahaweli Authority and in consultation with the Authority and on its approval will
finalise the final design.

The Company shall enter into agreements with the MA on a mechanism of compensating MA for the
use of Irrigation Canal. These subjects will de addressed in detail at the negotiating stage with the
MA.

Project implementation schedule

On obtaining SEA registration, it is estimated a time frame of about 14 months to complete

installation and commissioning of machinery and connect to the national grid. The schedule is given
in Table 9, below.

Table 9: Project Implementation Schedule

Activity Months (from the date of registering with SEA)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Site inspection and Identification of the
1 Done
project/location
Preliminary Data collection, analysis and
4 Done
verification
Pre- feasibility submission and register with
5 Done
the Sustainable Energy Authority (SEA)

6 Provisional Approval
Conditional Approval from Mahaweli
7
Authority / Irrigation Dept.
Detailed technical design including the civil
8 structural in consultation with Engineers of
Mahaweli

9 CEA, Mahaweli and All other approvals

10 Energy Permit (SEA)

11 Standard Power Purchasing Agreement (SPPA)

12 Energy Generation License (PUCSL)

13 E & M manufacturing and delivery

14 Civil and Other Works

15 Installation and Commissioning