EWC says S. Sulawesi power plant expansion to be commissioned 2008

Australian energy firm Energy World Corporation Limited (EWC) said 60-65 MW addition to its already-operating 135MW power plant in Sengkang, South Sulawesi is now scheduled for commissioning in September 2008, or one year later than earlier planned.

The company said in an Annual Report released Monday that outstanding details of the project's expansion are expected to be finalized in the second half of this year.

The company also reported that financing agreements to fund the project had been drafted and are under review with the banks and sponsors.

EWC has 47.5 percent stake at Sengkang power plant and is currently in the process of acquiring another 47.5 percent from US energy firm El Paso Energy. The remaining 5 percent stake is held by local firm PT.Trihasra, which is also intending to sell its stake in the plant to JSX-listed energy firm Medco Energi Internasional Tbk.

Sengkang power plant has a 20-year take-or-paypower sales agreement to state electricity firm PLN in the South Sulawesi electricity grid up to the year 2022.

Sengkang secured expansion right in 2002 after the Power Project agreed to cut electricity prices to PLN.

Gas supply for Sengkang plant is sourced from nearby Sengkang gas field.(alex)