RATCH deal in I’nesia deepens overseas push
A COMPANY backed Ratchaburi Electricity Generating Holding (RATCH) has entered into 20-year power purchase agreement for supply from a gas-fired plant that it will jointly operate in Indonesia, marking an expansion of its interests in the country.
RATCH’s indirect subsidiary, RH International (Singapore) Corp (RHIS), had entered into a shareholder agreement with Medco Power Indonesia (MPI) to establish Medco Ratch Power Riau. Owned 49 per cent by RHIS and 51 per cent by MPI, the company will operate the natural gas-fired combined-cycle power plant in Riau, with capacity of 275 megawatts.
Co-investment company MRPR on Friday signed the 20-year power purchase agreement involving the Riau plant with Perusahaan Listrik Negara.
RATCH chief executive Kijja Sripatthangkura the agreement marked a milestone for the company’s international expansion.
Kijja said Indonesia was strategically placed as a promising investment destination, with potential opportunities lying ahead for energy businesses. In addition, the synergy with MPI, a leading Indonesian power firm, supported the decision by the Indonesian government to select RATCH as the co-developer. “MRPR, a co-investment company with 12 billion rupiah (Bt32.42 million) in registered capital, will develop, construct and run the Riau power project,” Kijja said.
“The project cost is valued at about US300 million, which will be funded from two sources: 25 per cent of capital and 75 per cent of debt financing. Concerning the project risks, RATCH has thoroughly assessed relevant probability and minimised exposure to acceptable level.
“It is confident that the Riau IPP project will substantially drive the growth of enterprise value and generate income once its commercial operation begins in 2021. I strongly believe that RATCH and MPI’s long-term experiences and expertise in power project development will support progress of Riau project, with the completion as planned.”
In Riau province of Sumatra, the Riau IPP power plant will generate about Bt1.4 trillion kilowatt-hours a year.
