EWC bags $200m to build Sengkang expansion power project

New South Wales-based firm Energy World Corporation Limited (EWC) announced Monday that its 95 percent Indonesian unit firm PT Energi Sengkang has received a fully underwritten project finance debt package from Standard Chartered Bank and Mizuho Bank to finance the 2x60MW Sengkang combined-cycle expansion power project.

The financing is for US$200 million and includes the full capital cost of the expansion as well as a refinancing of existing Sengkang project debt, the company said in a statement.

The first 60MW gas turbine is scheduled to be operational in the third quarter of 2011 and the 60MW steam turbine is scheduled to be operational in the third quarter of 2012, it said.

The company said the steam turbine will draw waste heat from the planned 60MW gas turbine and the existing 60MW gas turbine which was installed in 2008. Together the combined cycle power plant is expected to have a plant efficiency greater than 50% and the gas turbine units will have lower emission levels than the original 135MW Sengkang power plant.

Upon completion of the 60MW steam turbine in 2012 the Sengkang power plant will deliver a capacity of 315MW of clean and green power to the South Sulawesi power grid.

The company also confirmed that contracts have been entered into with Siemens AG for the 60MW gas turbine; with PT. Alstom Power Energy Systems Indonesia for the heat recovery steam generator; with Alstom Switzerland Ltd. for the 60MW steam turbine; and with Slipform Engineering (U.K.) Limited for the Project Management Services.

These arrangements have keen made following the formal approval recently received from the Minister of Energy and Natural Resources from the Government of the Republic of Indonesia. The Minister approved the tariff contained in the amended Power Purchase Agreement (PPA) with PT. Energi Sengkang for the 120MW expansion to the Sengkang power plant. (denny)