Malaysia?s Mudajaya to acquire 70% stake in PT HEI
Tuesday, May 6 2014 - 12:57 AM WIB
Malaysia-listed Mudajaya Group Bhd said Monday that its wholly-owned subsidiary Mudajaya Corporation Bhd has signed a memorandum of agreement with Indonesian firms PT Indomuda Satria Internusa (ISI) and PT Harmoni Energy Indonesia (HEI) to acquire a 70 percent stake in HEI for US$5.8 million (18.5 million ringgit).
The company said in a filing with the exchange that HEI, which is a 70 percent-owned subsidiary of ISI, is a special purpose vehicle that has entered into a Power Purchase Agreement (PPA) with state-owned electricity firm PT PLN (Persero) South Sulawesi, Southeast Sulawesi and West Sulawesi regions for the development of a 2x7 MW coal-fired power plant on a build-operate-transfer concept for 25 years in Desa Baruta Analalaki Village, in Sulawesi.
The tariff rates for year 1 to year 8 is US$0.118487/kWh (equivalent to RM0.385083/kWh) and year 9 to year 25 is US$0.093840/kWh (equivalent to RM0.304980/kWh), the statement said.
It added that HEI is currently constructing the Project and the Commercial Operation Date (COD) of the 2 x 7 MW coal-fired power plant is expected to be achieved by end of year 2014.
HEI has secured a coal supply agreement for the duration of the PPA, where the quantity and the pricing of the coal have been finalised and agreed.
Editing by Reiner Simanjuntak