Friday, June 28, 2013
ISDN: has inked a non-legally binding MOU to acquire an 80% stake in each of three Indo energy-related companies - PT Sisira, PT Anggocci and PT Parduaan for a combined US$2.45m. PT Sisira has entered into a 20-year Power Purchase Agreement (PPA) with PT PLN of North Sumatra, Indonesia’s state-run power distribution company, to build, own and operate a 4.6MW mini hydro electric power plant. The facility will commence construction next year and be completed over the next 18-24 months. It is estimated to generate ~US$2m in revenue p.a. once it achieves full operations. The PPA states a tariff rate of IDR 787 (or US 8cts per KWh), compared to the expected running costs of between US 0.5-0.7cts per KWh. Based on projections, the facility could earn a total of ~US$40m operating profit over the 20-year contract period, vs the estimated investment cost of ~US$10m. PT Anggocci and PT Parduaan are at the signing stage of entering into PPAs with PT PLN in the same constituencies of North Sumatra to build, own and operate a 9MW and 10 MW mini hydroelectric power plant, respectively. Previously, ISDN had indicated its target of developing a series of hydropower projects that could total 100MW by end FY14. To date, the group has announced hydropower invmts in Sumatra, amounting to a combined 42MW energy pdtn capacity when fully realized.