Release: International Power signs power purchase agreement for 815MW Paiton plant expansion
Monday, August 4 2008 - 09:44 AM WIB
The Paiton 3 project comprises a single 815MW super-critical coal-fired unit which will be located within the existing Paiton complex, and is expected to be fully operational in 2012. The project has a fixed price contractual arrangement, with the main equipment supplied by Mitsubishi Heavy Industries, Ltd. As a result of its close proximity to the existing plant, Paiton 3 will benefit from shared facilities such as the coal jetty, coal stockyard and waste water treatment plant.
The plant will be operated by PT IPMOMI, the operator for the existing Paiton plant, in which International Power has a 59.5%* interest.
Philip Cox, Chief Executive of International Power, said, ?Strong economic growth in Indonesia has led to a significant increase in power demand and a requirement for new generation capacity. The Paiton 3 project will provide much needed additional capacity on the key Java-Bali grid, and will deliver an attractive return on investment for our shareholders. This project demonstrates International Power?s ability to capitalise on opportunities in emerging markets.?
The total project cost is estimated to be approximately US$1,450 million (?732 million), which will be funded by a mix of project finance debt and equity in line with comparable long-term PPA projects in the region. International Power?s equity investment will be funded from current liquid resources. Financial close is expected in the first quarter of 2009.
Notes to Editors:
PT Paiton Energy is owned by International Power 40.5%*, Mitsui 40.5%*, TEPCO 14%, PT BHP 5%
PT IPMOMI, is owned by International Power 59.5%*, Mitsui 25.5%*, TEPCO 15%.
* These ownership percentages include interests held via IPM Eagle LLP, a 70/30 partnership between International Power and Mitsui. International Power?s 40.5% interest in PT Paiton Energy also includes a 9.2% economic interest, acquired from Mitsui.(end of release)