Federal enters Bengkulu hydro power plant venture

Singapore Exchange-listed firm Federal International (2000) Ltd announced Thursday its subsidiary has set up a joint venture firm to develop a mini-hydro power plant in Bengkulu province.

Federal holds 60 percent in PT Mega Federal Energy (MFE) while local firm PT.Manna Energy Pratama (MEP) has the balance.

MFE has been awarded a 25-year contract to build a 4-megawatt mini-hydro power plant project on a ?Build, Operate and Own? (BOO) basis at a cost of US$4.38 million, the company said. This project is expected to generate revenue of approximately $56 million over a contractual period of 25 years.

MFE will be entering into a service agreement with PT MEP for supply of electricity to PT PLN (Persero) Distribusi Bengkulu.

The engineering and procurement activities for this project will commence in March 2008 and construction of the plant is expected to be completed by mid-June of 2009 or earlier, the company said.(alex)