ISDN

ISDN: Update on previously announced proposed acquisition of 41% and 80% stake in PT Prisma Karun Energy and PT Potensia Tomini Energi respectively. Prisma has to date inked a power purchase agreement (PPA) with Indonesia’s state-run power distribution company, PLN, to develop a mini hydropower plant in South Sulawesi, with yearly revenue ranging btwn US$4-5m over the tariff of IDR 787 or US 8ct per KWh. Construction is expected to commence early next year and is expected to last 18-24 mths. Potensia is in the process of signing a similar agreement in central Sulawesi. Mgt’s goal is to increase portfolio size to 100MW by end FY14 with a view to doubling it within the next 3-5 yrs. Mgt is also looking at Sumatra as another possible region for hydropower devt and at matured hydropower plants as a form of acquisition. Believes the mini hydropower plant model is a replicable and scalable concept with relatively low running costs btwn 0.5 to 0.7 US cts per KWh. The projects will be financed with a combination of equity and project debt financing. The stock remains on trading halt.