PLN, Megapower sign PPA for a mini-hydro power plant
Wednesday, December 19 2012 - 04:01 AM WIB
State utility PT Perusahaan Listrik Negara (PLN) and PT. Megapower Makmur, an indirect 80 percent subsidiary of Bina Puri Holdings Bhd signed a power purchase agreement (PPA) for the planned mini-hydro power plant in Tompobulu district, Bantaeng regency of South Sulawesi province.
The mini-hydro power plant, which will have a generation capacity of 4.2 megawatt (MW), will need a total investment of US$10 million, Megapower said in a press statement on Tuesday.
After its completion by early 2014, it would increase the total generation capacity to 18.2 MW.
"We would like to inform that Bina Puri Power Sdn. Bhd., the holding company of PT. Megapower Makmur had achieved the financial close at US$7.668 million from Bangkok Bank Bhd. on 9th October 2012. The fund will partly finance the development of the mini hydro power plant," it said
The annual output of electricity produced from the power plant is approximately 23,915 GWH. The tenure of the Power Purchase Agreement (PPA) signed with the South Sulawesi, Southeast Sulawesi and West Sulawesi division of PLN is 15 years, effective from the date of commercial run of the power plant.
The construction period for the plant shall take twenty four months. This is the sixth power plant secured within the region, the company said in a press statement.
The agreement is expected to contribute positively to the earnings of Bina Puri Group from the financial year ending 31 December 2014 onwards.
Editing by Benget Besalicto Tnb.