International Finance Foreign Investment
International Finance Corporation (IFC) has decided to invest $9 million in Bangalore-based RenewGen Enviro Ventures India Pvt. Ltd. At present, this enterprise is developing a waste to energy project in Sri Lanka.
This deal is expected to be a fusion of debt and equity both at the project level and the holding company level.
Presently, RenewGen is executing 10MW waste to energy project in the western province of Sri Lanka.
The company is planning to process up to 580MT/day of municipal solid waste (MSW) and generate up to 10MW of electricity that will be sold to the grid.
The concession, however, will be undertaken by RenewGen Environment Protection Kotte Pvt. Ltd., a company incorporated in Sri Lanka. Further, the Ceylon Electricity Board has been scheduled to off-take the power generated from the plant.
The project is expected to cost $29 million, and is one of the largest FDI in Sri Lanka in the sector. RenewGen Enviro Ventures India will own over 51% in the project while a local government body will own 5%. Remaining stake will be held by IFC and other investors.
However, after the financial closure of the Sri Lanka project, RenewGen Enviro will be initiating discussions with other investors for a larger investment round at the holding company level.
RenewGen Enviro Ventures is planning to develop a portfolio of waste to energy projects in South Asia.
The company is looking forward to build a 100 MW portfolio of renewable energy assets using municipal solid waste (MSW) as the fuel. Besides Sri Lanka, the company is also bidding for projects in India and Bangladesh.
RenewGEN Enviro Ventures India Pvt. Ltd. is focused on responsibly and profitably addressing the large untapped opportunities in the Waste to Energy (WTE) space in India. The company has identified municipal solid waste (MSW) as a clean, sustainable, and reliable source of energy.
International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries. IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States.