RATCH, Medco to bid for Riau power plant project

Thailand?s listed Ratchaburi Electricity Generating Holding (RATCH) has formed a 49:51 joint venture firm with Indonesia?s listed PT Medco Energi Internasional Tbk to bid for a 250-MW natural gas-fired power plant in Riau, Indonesia, a report said on Thursday.

The project - whose bidding is scheduled to start next month - will require an investment of around US$350 million, Rum Herabat, chief executive officer of RATCH, said as reported by dealstreetasia.com.

This new project will help the company revise its power generation target from 9,700 MW to 10,000 MW by 2023.

"We will either invest in organic projects or acquire the stakes in developed projects overseas to achieve our target. Meanwhile, we will also look for opportunity in new businesses to minimize the risk from depending on power business. We plan that other business should contribute around one- third of total revenue in the future,? he said.

Apart from the project in Riau, RATCH is also in the process of conducting due diligence to acquire 30 percent in South Sumatra?s coal-fired power plant project with electricity capacity of 900 MW, which should be finalized this month.

The 800-MW Java 3 in Indonesia, worth $500-$600 million in joint venture with Banpu, is set to make the bidding by the end of this year.(*)