ECONOMYNEXT – An investment by a Sri Lankan firm to buy a minihydro power plant in Uganda has been delayed by foreign exchange controls and approval by the overseas electricity regulator.
Sri Lanka’s Vidullanka Plc said in a stock exchange filing that there is a delay in getting approval from the Exchange Control Department of Sri Lanka’s Central Bank and the Electricity Regulatory Authority of Uganda.
Vidullanka planned to issue new shares to Timex Garments (Pvt) Ltd. in a private placement to partly fund the acquisition of the Timex Bukinda Hydro (U) Ltd.
Timex Bukinda Hydro has got all approvals except a power purchase agreement for the 6.5MW Bukinda small hydro power plant.
But Vidullanka Plc said the proceedings of the proposed private placement of shares to Timex Garments to buy Timex Bukinda Hydro (Uganda) Ltd. will be delayed since regulatory approvals were pending.
(COLOMBO, April 18, 2017)