KUALA LUMPUR, July 10 Malaysia's Genting Bhd's
unit has won the bid to develop a $1 billion worth of
660 MegaWatt (MW) coal-fired power plant in Banten province in
the West Java of Indonesia, the parent company said on Tuesday.
The project marks the gaming-to-power conglomerate's maiden
investment in the Indonesia growing power sector, which is
fuelled by rapid urbanisation of Southeast Asia's largest
"The project is expected to contribute positively towards
the future earnings of Genting after the Banten plant achieves
commercial operations in 2017," the company said in a local
stock exchange filing.
Genting said its Indonesian unit PT Lestari Banten Energi
signed on Tuesday the 25-year power purchase agreement with
Indonesia's state-owned electricity company PT PLN.
The Banten plant will be developed and operated on a build,
own, operate and transfer basis for a period of 25 years,
following which, it will be transferred to PLN for nominal
consideration, Genting added.
Genting's indirect wholly-owned unit Lestari Listrick Pte
Ltd owns 95 percent stake of Lestari, while PT Hero Inti
Pratama, whose holding company is the founding shareholder of
Indonesia's listed PT Hero Supermarket Tbk, owns the
Up to 75 percent of the $1 billion cost will be funded via
non-recourse debt by Lestari with the remaining through equity
injections or loans from its shareholders, according to Genting.
Genting said it will finance its portion through its or its
subsidiaries' internal funds and proceeds raised from its bond
issuance in June.
(Reporting By Yantoultra Ngui; editing by James Jukwey)