The Ishasha project, in Kanungu district in southwest Uganda, will be completed in 21 months.
Only about 5 percent of Uganda’s population has access to electricity.
EPL is a privately owned Sri Lanka-based company incorporated in Uganda in 1997. A 90 per cent stake in EPL is held by Eco Power Holdings while the rest is owned by Romesh Dias Bandaranaike.
The company has extensive experience in the construction of small hydropower plants in Sri Lanka and currently is undertaking 10 projects with a total capacity of 23MW.
It has so far commissioned 17.3 MW of installed capacity which it owns.
Eco Power's projects based on run-of-river hydro generation assets aims to reduce Sri Lanka's dependence on fossil fuel based generation, mostly diesel and fuel oil.
Its last project is to start operations by mid-2007, at which time final installed capacity will be 31 MW.
The projects are located on the Hapugastene tea and rubber estates, and in Alupola estate in the Ratnapura district, on Hulu Ganga in Kandy district near the town of Panwila, on Magal Ganga in Kegalle district, on Maliboda estate, west of the town of Deraniyagala, and on Badulu Oya north east of the city of Badulla.
Eco Power has no foreign technical collaborators and has developed its own in-house technical capabilities for designing, constructing and operating small hydro power plants, the IFC statement said.
The company also aims to bundle the projects together and earn carbon credits by selling up to an estimated 115,000 tonnes/year of Certified Emissions Reductions (CERs) under the Clean Development Mechanism (CDM) of the Kyoto Protocol.The value of its emissions reductions purchase agreements are expected to be in the range of 3.5 – 4.5 million dollars.