Singapore?s Portek in S. Sumatra power plant project

Singapore Exchange-listed firm Portek International Limited announced on Friday it had invested US$1.5 million in cash for a 15 percent stake in newly incorporated firm PT Metaepsi Pejebe Power Generation (PT Meppo-Gen), which will develop two 40MW GE LM6000 gas-fired turbines in Muara Enim, South Sumatra.

Under a 20-year power purchase agreement, PT Meppo-Gen will construct, own and operate the power plant with state electricity firm PLN will purchase 80% of the power output generated the power plant. The plant is expected to commence operations in the first quarter of 2007. PT Meppo-Gen will also be able to contract with other buyers for the remaining 20% of electricity produced.

The power plant at Muara Enim is estimated to cost US$45 million. Apart from the US$10 million from PT Meppo-Gen's issued and paid-up share capital, financing of the gas-fired turbines has already been secured with Bank Internasional Indonesia based on a loan of US$25 million. The remaining project cost is expected to be financed through shareholders' loans.

PT Meppo-Gen had earlier signed a gas supply contract with PT Medco E&P Indonesia, which will supply to PT Meppo-Gen gas from gas fields located nearby.

Portek, as part of its investment, will be jointly involved in the construction, project management and operations of the Project.

The other shareholders of PT Meppo-Gen are Indonesian entities including PT Widjajatunggal Sehahtera, PT Meta Epsi, a turnkey power generation contractor and PT Pembangkitan Jawa-Bali, a subsidiary of PLN. (alex)