10 July 2012

Genting Bhd's 95%-owned subsidiary is undertaking a coal-fired power plant project in Banten province, west Java which is estimated to cost about RM3.19 billion

Genting Bhd's 95%-owned subsidiary is undertaking a coal-fired power plant project in Banten province, west Java which is estimated to cost about US$1bil (RM3.19bil).

It said on Tuesday the project involved the financing, design to construction and maintenance of the plant with a gross generating capacity of 660MW with support facilities in Banten Province, West Java.

The Banten plant would developed and operated on a build, own, operate and transfer basis for 25 years, following which, the Banten plant shall be transferred to the Indonesian state-owned electricity company PT PLN (Persero) for a nominal consideration. The plant is expected to start commercial operations in 2017.

Genting said its unit, Lestari Listrik Pte Ltd's 95%-owned subsidiary PT Lestari Banten Energi had entered into a 25-year power purchase agreement (PPA) with PLN for the Banten plant.

The remaining 5% is held by PT Hero Inti Pratama, which is Lestari Listrik's local partner for the project.

"The conclusion of negotiations and execution of the PPA represents a key milestone since the selection by PLN (Persero) of the Lestari Listrik and PT Hero consortium as the preferred bidder for the project on Oct 20, 2011," it said.

Genting said Lestari Listrik was is expected to finance its investment in the project using internally generated funds of Genting and its subsidiaries and/or proceeds from the medium term notes issued by the Genting group in June 2012.

Source: www.thestar.com.my

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