Hopewell extends deadline on Tanjung Jati B power project sale

Hong Kong utility firm Hopewell Holdings Ltd announced Tuesday that it had decided to extend the deadline for the sale of Tanjung Jati B coal-fired power project in Jepara, Central Java, to Japanese firms.

The settlement date had been extended to September 20 from June 30 as the parties were still in the process of satisfying some conditions set out in their agreement, Hopewell said in a statement.

As previously reported, Hopewell's 80 percent-owned PT Hi Power Tubanan 1 will sell its stake in the Tanjung Jati B power project for US$306 million in cash, engaged in the construction and operation of two generating units with capacity of 660 megawatts each, to Sumitomo Corp and the Japanese trading house's unit PT Central Java Power.

Hopewell will receive about $215 million of the sale price, its 20 percent partner PT Impa Energi will get about $53 million, and $38 million will be used to pay outstanding contractors' bills for the project. (robert)