IFC to pick up stake in Renewgen's Sri Lankan arm

International Finance Corporation (IFC) is planning to pick up an equity stake in Renewgen Environment Protection Kotte Private Limited (Renewgen Kotte), a company incorporated in Sri Lanka by Renewgen Enviro Ventures India. The Indian company was promoted by TT Jagannanahthan, chairman of the TTK Group, along with others.

According to the IFC’s project disclosure, of the total project cost estimated at $29 million, the corporation is considering providing a financing package of up to $9 million consisting of equity and debt at both the sponsor and company level. The project will be located at Kaduwela in the Western Province of Sri Lanka.

The developer has secured the first competitively-awarded, waste-to-energy concession in Sri Lanka from the Waste Management Authority of the Western Province in Sri Lanka (WMA). With a 25-year concession, the 10-Mw project will be taken up in a build-own-operate mode.

The project will process up to 580 tonne a day of municipal solid waste (MSW) and will generate up to 10 Mw electricity, which will be sold to the grid. The concession will be undertaken by Renewgen Kotte.

The Ceylon Electricity Board will off take the power generated from the plant. The project will use a highly-proven (deployed in over 400 plants worldwide) grate-based mass incineration technology that is suitable for unsorted MSW in conjunction with advanced emission-purification systems, according to the disclosure.