Sri Lanka’s sugar market will receive a boost with the final leases for the Kantale Sugar Factory to be signed and handed over to MG Sugar.
MG Sugar is owned 51% by the government and 49% by Moussy Salem and Mendel Gluck, representing SLI who have invested years into developing a world class team. The investors have developed all engineering design, the teams are instructed, and the plans are set for implementation.
All that prevents the initiation are the final leases; as soon as these are signed and handed over, the teams will mobilize and works on site will begin.
The landmark project will have a 27.5 MW maximum capacity cogeneration plant from biomass, with an export of 10 MW to the National Grid. The factory will produce 80,000 tons of direct consumption sugar per annum to the local market, resulting in foreign exchange import savings of approximately US$ 50 million per annum. The factory will utilize leading European equipment and Israeli technology for agriculture and irrigation. Introduction of a state-of-the-art drip irrigation system into Sri Lanka will enable the project to save on water usage and also create new opportunities to deploy the same system nationwide. The movement will also change the outlook of the agriculture and irrigation industry in the island, and will demonstrate how to minimise water requirement.
This project will offer progressive solutions to the economic development of the Trincomalee district region and wider rural economy. Over 3,500 will receive direct employment opportunities and a further 3,000 farmer families will benefit.
To fulfil proposed expansions, plans to train a cadre of skilled workers will be put in motion, and 10,000-15,000 indirect employment opportunities would also be generated.
The plans will also outline additional infrastructure development in the area, and will see the establishment of new schooling and health facilities. The wider social support will assist in solving health issues and related public costs arising from the consumption of illicit alcohol. Sri Lanka’s economic and social development is intrinsically linked to the Kantale Sugar Factory, and the onset of the project is a cause for national celebration.
Together with Mahaweli Water Authority the company will develop the “Janaranjana Pumping Project” which will benefit water supply to 30,000 ha of agriculture land new development areas, in Medirigiriya and Kaudulla.
With the leases being handed over in December the project is to be commissioned in July 2023.
The team comprises Booker Tate, whose notable contribution to the sugar industry is well documented; Grupo TSK will act as the industrial EPC and O&M, alongside Netafim who are world leaders in irrigation technology and equipment, for the agricultural EPC and O&M. The internationally acclaimed Hogan Lovell worked together with financial advisers Fieldstone, who developed all contracts and financial models for this project.
