Tea with CEO




1. Brief introduction to the history of Vallibel Power
Vallibel is a diversified conglomerate which has invested in financing, banking, Leisure, Garments, Manufacturing industry and power sector. Under Vallibel Power it develops renewable energy projects to generate electricity and supplies electricity to national grid. Vallibel ventured into power generation business in early 2000 and successfully commissioned its 10MW plant in 2004, which later on went public with the record breaking oversubscribing shares in year 2006, and has generated substantive profit for its shareholders. Since then Vallibel has invested extensively in hydro power sector contributing more and more green energy to the nation.

2. What are the current projects that are in operation and under construction under Vallibel Group?
With installed capacity of professionally engineered 10MW "Erathna" mini hydro project, Simultaneously Vallibel engineering team developed 8.64MW, "Way Ganga" small hydro power project in the same year and 2MW "Barcaple" small hydro power project in year 2007 under Didul (Pvt) Ltd.

Identifying the further potential in the Kuru Ganga, in Rathnapura District, it again successfully commissioned its 6.5 MW "Adawikanda" small hydro power project, under Alternate Power Systems (Pvt) Ltd in year 2009.

Securing the professionalized talents, Vallibel Power Erathna PLC acquired Country Energy (Pvt) Ltd to develop 4.65 MW Kiriwaneliya hydro project and 7.2 MW Denawaka hydro project and tied up with the national grid on Dec 2011 and February 2012 consecutively.

Recognizing the importance of the local value addition and the development of local manufacturing industry, as an essential driver of socio-economic development of the country, Vallibel has taken a strategic decision to develop 850kW pilot wind power project using locally manufactured wind turbines supplied by Vawin (Pvt) Ltd, Sri Lanka.

3. What is the Vallibel Power contribution to the national electricity demand?
CEB has recorded its ever highest daily electricity demand of over 35 GWh recently. With the newly commissioned two power plants Vallibel can deliver 100GWh of electrical energy annually to the national grid, which is equivalent to 03 days electricity consumption.

At present the annual electricity demand will be generated by the total installed hydro power plant capacity of 1600 MW. Out of that total hydro wealth, 1400 MW is belongs to CEB and little over 200MW is owned by small private power producers. Vallibel Group contributes to that by installed capacity of 29MW which accounts to an annual generation of 100GWh electricity annually to the system with 15% market share from the private power producers.

4. Where do you see this number likely to be in the near future?
Sri Lanka has the estimated potential of for small hydropower projects over 500 MW and nearly 50% of the resources are under current development. Vallibel also owns new permits of cumulative capacity of 15MW under its project development companies and constructions of some of the new projects are scheduled to start soon.

5. How far is Vallibel in success to generate electricity from other renewable energy sources?
Our research team has already identified the potential of Wind energy and Solar PV installations in Sri Lanka. We cannot just rely only on hydros and are trying to find out options to make other renewable energy sources affordable to generate electricity in Sri Lanka. In line with that we have set up a pilot wind power project in a complex terrain on the Balangoda central hills. This project is to show the possibility of harnessing the wind resources scattered over the central plains were we have less developed infrastructure which restricts the transportation and installation of wind turbines.

6. How has 2012 been so far?
We are experiencing unexpected dry weather this year in our hydro power plant catchment areas which has adversely affected the power generation. This is the worst year recorded in the last decade. When compared to the last year, power generation has reduced by 22% but we are expecting that to be normalized soon as the monsoon has started.

7. As the CEO of the company, how do you see the sector and what you believe?
A development of hydro power project is a great business which operates in a very attractive market space; fact of never compromising the quality has brought us the confidence that we will make the best out of anything. Managing the hydro power business prudently is not a difficult task but we have to understand the fact that every day market barriers are rapidly growing against the renewable energy sector in Sri Lanka. Our well qualified technical professionals have become increasingly adept in recent years in driving the best available result from uncertain circumstances.

Our chairman, Mr. Dhammika Perera's guidance of "We should never lose sight of the fundamentals"., makes us not to see any barriers, but only hurdles. That is the core value of Vallibel Power and the philosophy I believe which takes us to success.

8. How do you plan to achieve future growth aspirations of the company?
During the past years we have grown up to a state that we can do work with confidence in renewable energy industry and spread our operation globally. Now we are negotiating with parties to develop hydro power projects in Nepal and African Region. This will bring the international recognition to Vallibel and to our mother land, while bringing in foreign currencies to the country.

9. What do you think about mini hydro and other renewable energy industry in Sri Lanka?
Looking in overall renewable energy industry, I must say that this is one of the best industries which have developed professionals for nearly 02 decades. This is the area where engineers can get hands on experience. Almost all the projects commissioned in Sri Lanka are designed, constructed and managed by Sri Lankans. Technology wise they are not second to the plants running in Europe or any other developed countries.

But as a nation there is a lot to explore in renewable energy in the country. Even though we have estimated 5000MW of wind power potential, our infrastructure has not developed to the adequate level to absorb it. Starting to work on research projects such as solar, will definitely clear the paths.

10. What do you think are the challenges (depreciation of the Rupee and especially the drastic increase in interest rates, tariff, drought etc...) for Sri Lanka's hydro power industry to achieve its targets?
Normally the cost of the turbines, generators and penstocks alone are 50% of the project cost in case of direct imports. Depreciation of Rupee has increased the direct cost by 15~ 20% and when taking account of the interest rates and the lack of attractive projects, investors will lose interest in this sector. To develop these projects, in such a difficult environment, industry should be given attractive incentive schemes and more assistance from relevant authorities' in obtaining the necessary statutory approvals.

11. Looking at global trends, in which direction can you see it going and how will this impact on the local industry?
Globally wind industry is growing at 30% and annually and has created employment for more than 400,000 people. World installed capacity is around 120GW and even if we take account of 0.5% of market share of annual incremental demand; it is around 200MW of machinery supplying market. So there is a plenty of opportunities still available for the local manufacturing industries in the international market.

12. What could be the supportive role played by the relevant statutory agencies
To successfully complete one project we have to undergo very strict approval process from the governing institutions and in most cases we have to appreciate in good faith the effective support extended by the institutions such as Ceylon Electricity Board, Sustainable Energy Authority, Board of Investment and also the local communities.

Read More>> Daily News, Friday, 15 June 2012
 

 Vallibel Power Mini Hydro Power Project qualified for CDM

It is with great pleasure that Country Energy (Pvt) Ltd wish to inform our shareholders that we were able to register under United Nations Framework Convention on Climate Change (UNFCCC). Our consultant, First Asia Carbon Lanka (Pvt) Ltd of Singapore tediously followed up the process and they were able to complete the registration process by 06th December 2013. (Webpage link of CDM registration



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 Yet another Achievement by Vallbel Power

The Institute of Chartered Accountants of Sri Lanka, who is the national accounting body organised its 49th Annual Report Award Ceremony on 10th December 2013 at Waters Edge, Battaramulla.



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 Inter-Site Staff Cricket Tournament - 2013

Vallibel Power Erathna PLC, organized inter site staff cricket tournament at Eheliyagoda Public Ground on 30th November 2013 representing six teams from employees of all mini hydro power projects established by the Company. This inaugural cricket match comprised Eleven Side League Cricket Tournament.



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 Vidooka Art Compitition - 2013

Vidooka Art Competition was successfully held for the second consecutive year to recognize the young drawing talents of our rural.



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 Change of Directorate

Ms. Dona Shyamalie Nishanthi Weerasooriya has been appointed as an Alternate Director to Mr. K D D Perera with effect from 11th November 2013.

 The Annual General Meeting of Vallibel Power Erathna PLC

The Twelfth Annual General Meeting of Vallibel Power Erathna PLC was held at The Kingsbury, Colombo 01 on Thursday, 27 June 2013 at 9.30 a.m. The meeting was chaired by the Director Mr. Nimal Perera.

The following resolutions were passed with the unanimous consent of the Shareholders.

1) Receive and consider the Annual Report of the Board of Directors, Financial Statements of the Company &     Group for the year ended 31 March 2013 together with the Report of the Auditors thereon.

2) Re-elect Mr. S E De Silva who retires by rotation in terms of Article 25 (10) of the Articles of Association,
    as a Director of the Company.

3) Re-elect Mr. H Somashantha who retires by rotation in terms of Article 25 (10) of the Articles of Association,
    as a Director of the Company.

4) Re-elect Mr. P B Perera who retires by rotation in terms of Article 25 (3) of the Articles of Association,
    as a Director of the Company.

5) Re-appoint Messrs Ernst & Young, as Auditors of the Company for the ensuing year and to authorize the
    Directors to determine their remuneration.

6) Authorize the Directors to determine and make donations for the year ending 31 March 2014 and up to the
    date of the next Annual General Meeting.

 Interim Dividend for the year ending 31st March 2013

The Company has announced Rs.0.25 (Twenty five cents) per share, Interim (Tax Free) Dividend for the year ending 31st March 2013. The dividend payment date is 19th February 2013 and XD date is 8th February 2013. Total value of the Dividend is Rs.186.7 Million.

 Change of Directorate

Mr. W. D. N. H. Perera was appointed as the Alternate Director to Mr. Prashan Buddhika Perera with effect from 22nd February 2013.

 Vallibel Power recognized at ACCA Sustainability Awards

Vallibel Power Erathna PLC was adjudged the First Time report winner in the Small Scale Category of ACCA Sri Lanka Sustainability Reporting Awards 2012. The Awards ceremony was held at the Cinnamon Grand Colombo on 20th February 2013. This was the 10th edition of the ACCA Sri Lanka Sustainability Reporting Awards.



Read More >> Published on Sunday Times on March 3, 2013

 'VPEL grabs the Gold Award in Annual Reports Award Ceremony 2012'

Vallibel Power Erathna PLC for the consecutive year was able to win an award from The Institute of Chartered Accountants of Sri Lanka.

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 'President presents National Green Awards to environment protectors and VPEL wins     Bronze'

Erathna Mini Hydro Power Project has won the Bronze award in Mini Hydro Category at the National Green Awards 2012.

  
Read More >> Daily FT, Wednesday, 5th December 2012

 Small Hydro Power Developers elect new Executive Committee

The Small Hydro Power Developers Association elected a new executive committee for the year 2012/13 at the Annual General Meeting held on 31 October 2012 at the Royal Golf Club Colombo.

Read More >> Daily FT, Monday, 12th November 2012

 Vallibel Power Art Competition 2012

Vallibel Power Erathna PLC organized its first Art Competition Vidooka 2012 for the children of Erathna and Adavikanda villages and the children of its staff members, as a CSR initiative.



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 Sri Lanka to construct 200 mini hydropower projects

Sri Lanka Minister of Power and Energy Patali Champika Ranawaka says that measures are in place to construct 200 mini-hydropower projects in the island.

Read More >> ColomboPage Online, Tuesday, 06th November 2012

 Sri Lanka inflows to hydro power plants lowest in 20-years

Water inflows to Sri Lanka's hydro power plants up to September 2012 was the lowest in 20-years and much lower than a year earlier which was also a drought year, the island's power ministry said.

Read More >> Lanka Business Online (LBO), Friday, 05th October 2012

  Small Hydro Power Association cries foul over PUCSL's move

The Small Hydro Power Association (SHPA) yesterday cried foul over the sudden withdrawal of new tariff announced by the Public Utilities Commission (PUCSL) and warned the move by regulator had put 50 MW of renewable energy at stake.



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  Renewable Energy Firms

Sri Lanka renewable energy firms demand higher tariffs after depreciation.

Read More >> Lanka Business Online, Wednesday, 29th August 2012

  Delegation from Seychelles visits Vallibel Mini Hydro Power Plant

The delegation of senior officials of the Government of the Seychelles which accompanied His Excellency James Alix Michel,President of Republic of Seychelles on his State Visit to Sri Lanka, paid a visit to a mini hydropower project of Vallibel located at Erathna, Kuruwita.



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  First Quarter Results

The Company released the first quarter results for the period ended 30th June 2012 on 14th August 2012.

  ISO Certification

VPEL, recognizing the importance of continual growth, is in the process of obtaining the ISO certification. It has taken the initiative to establish an Integrated Management System of ISO 9001:2008 & ISO 14001:2004. An agreement was signed with Somaratna Consultants on 25th July 2012 for this purpose.



  Annual Excursion of Vallibel Power Erathna Head Office 2012

This year, Annual Excursion of Vallibel Power Head Office Staff was to Trincomalee - Hotel Chaaya Blu. The excursion was on 21st and 22nd July 2012.



  Vallibel Power Erathna PLC organized a training program on 5S to its staff on     30th June 2012

As an initiative towards continual improvement, Vallibel Power organized a training program on Work & Life Balance and 5S to all staff on 30th June 2012. The program was conducted by Sri Lanka Institute of Development Administration (SLIDA) at SLIDA premises.





  The Annual General Meeting of Vallibel Power Erathna PLC for year 2012 was held on     26th June 2012 at Hotel Taj Samudra Colombo

The Annual General Meeting of Vallibel Power Erathna PLC for year 2012 was held on 26th June 2012 at Hotel Taj Samudra Colombo. The meeting was chaired by the Director Mr. Nimal Perera. The meeting was concluded with an informative company profile vedio presented to all shareholders.

  Tea with CEO

Vallibel is a diversified conglomerate which has invested in financing, banking, Leisure, Garments, Manufacturing industry and power sector. Under vallibel power it develops renewable energy projects to generate electricity and supplies electricity to national grid. Vallibel ventured into power generation business in early 2000 and successfully commissioned its 10MW plant in 2004, which later on went public with the record braking oversubscribing shares in year 2006, and has generated substantive profit for its shareholders. Since then vallibel has invested extensively in hydro power sector contributing more & more green energy to the nation.

Interviewed by: Ashwin Hemmathagama



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