EWC: Signs second PPA amendment for 120MW expansion

(November 16, 2010)--The Directors of Energy World Corporation are pleased to announce that its 95% subsidiary company PIES signed a Second Amendment to its existing Power Purchase Agreement (?PPA?) with PT. PLN (Persero). This will increase power output from the gas fuelled Sengkang Power Plant from 195MW to 315MW ? an increase in output of 120MW.

The Memorandum of Amendments to the PPA was signed by President Commissioner of PIES, Brian Allen representing PTES, and President of PT. PLN, Dahian Iskan, in the Ballroom of the Clarion Hotel and Convention Centre, Makassar on Friday afternoon. 12 November 2010. Among the many guests, present at the signing of the PPA Amendment were the South Sulawesi Governor, Syahrul Yasin Limpo; GM PLN Region, Sulselrabar Ahmad Slang; Vice Regent Wajo, Amran Mahmud; Member of DPD RI, Bahar Ngitung, as well as the management of PLN?s South and West Sulawesi.

The expansion will be undertaken in two phases ? a 60MW gas power turbine generator will enter commercial operation in September 2011 and a 60MW steam powered turbine generator (combined cycle power plant) will enter commercial operation in September 2012.

The expansion will involve a capital investment of USD150-160 million. EWC has mandated Standara Chartered Bank and Mizuho Corporate Bank Ltd. to arrange US$200 million project financing and refinancing facilities for PT. Energi Sengkang. The project financing facilities will fund 100% of expansion project costs and repayment will be over 7-10 years. Terms and conditions have been agreed and EWC targets to receive a fully underwritten finance offer before year end. EWC expect the US$200 million financing to be well received by lenders, it has received strong expressions of interest from existing lenders to the Sengkang project as well as new lenders. (end of release)