WIKA says 3 power plants to start contributing revenues in 2012

IDX-listed state construction and engineering company PT Wijaya Karya Tbk (WIKA) said the company is constructing three power plants that are expected to begin contributing revenues to the company starting from 2012.

The three power plants are diesel power plant (PLTD) Ambon which will generate 24 megawatts (MW) of electricity, PLTD Rengat in Riau with output capacity of 20 MW and gas-fired power plant PLTG Borang in Palembang, South Sumatera with output capacity of 60 MW.

?These projects are expected to be completed soon and will start contributing revenues to the company,? WIKA said. With the operation of the three power plants, revenue contribution from investments would increase to 10 percent of total revenues in 2012.

Unlike in previous schemes, WIKA hold stakes in those power plants, therefore the power plants would provide sustainable recurring income in the future. So far, WIKA has completed one power plant project, in which WIKA holds stake, namely PLTD Bali which generates electricity capacity of 3x18 MW.

WIKA said the completion of the four projects would encourage the company to invest more on power plant projects. Currently, WIKA is bidding on two power plant projects in Riau and West Java. However, it said wihout disclosing the name of the projects.

WIKA said the total value of contracts secured by the company until mid November 2011 reached Rp11.92 trillion, expanded from Rp9.42 trillion at end September. The value of contracts represented 97 percent of the company?s contract value target for 2011 at Rp12.3 trillion.(giok)