Aug. 20. 2007
Marubeni Corporation (“Marubeni” hereafter) successfully secured the development right to generate and supply electricity to PT. Perusahaan Listrik Negara (Persero) (“PLN” hereafter) from the 660MW power plant to be newly built, owned and operated in Cirebon area in West Java, Republic of Indonesia Power Purchase Agreement (“PPA” hereafter) with PLN for 30 years is to be signed in Indonesia-Japan Business Forum in Jakarta on August 20, 2007 in the presence of Indonesian President Mr. S. B. Yudhoyono and Japanese Prime Minister Mr. S. Abe.
The outline of tender was announced in the 1st Indonesia Infrastructure Summit in 2005, which aimed to promote foreign investment to improve the infrastructure in Indonesia, and the international competitive bidding organized by PLN was executed in April, 2006. Marubeni joined this bid in the form of consortium with three (3) other companies, namely with Korea Midland Power Co., Ltd. (“Komipo” hereafter) of Korea, PT. Tripatra Engineers and Constructors (“Tripatra” hereafter) of Indonesia and Samtan Co., Ltd. (“Samtan” hereafter) of Korea. In addition to the competitive price offered by our group, Marubeni’s rich experiences as an international Independent Power Producer (“IPP” hereafter) and the firm relation with PLN established through Marubeni’s plenty of supply record of power generating facilities, Komipo’s operation achievement as a one of Generation Company in Korea, Tripatra’s work experience and business capability as an engineering firm in Indonesia and Samtan’s ability as the coal supplier were highly evaluated and led us to be awarded to this project.
Total project cost is about US$750 Mil., which is the 1st large IPP project through international competitive bidding in Indonesia after Asian Economic Crisis. The project company named PT. Cirebon Electric Power (“PT. CEP” hereafter), which is the party to PPA with PLN, was established in April, 2007 and through PT. CEP, electricity will be sold to PLN. Marubeni, Komipo, Tripatra and Samtan own 32.5%, 27.5%, 20% and 20% of PT. CEP’s shares respectively. Finance closing is expected within one (1) year and the commercial operation will be achieved by August, 2011. For thirty (30) years after commercial operation, electricity will be supplied to West Java including Jakarta, where serious shortage in electricity supply is anticipated. Approximately 70% of the project cost will be covered by project finance, and assistance from Japan Bank for International Cooperation, The Export-Import Bank of Korea and international commercial lenders is expected. A set of power generating facilities including super critical boiler for coal fire will be supplied by Doosan Heavy Industries and Constrution Co., Ltd. of Korea on a full turn key basis.
Marubeni positions overseas IPP business as its core business and is attempting to pile up its global portfolio to reinforce its solid foundation. Marubeni keeps contributing to the development of power generating sector, which is the basic infrastructure, all over the world.
<Korea Midland Power Co., Ltd.>
Add. : Samseong-dong, Gangnam-gu, Seoul, Korea
Representative : Mr. Chung Jang-Sup
Year of Establishment : 2001
Paid-up Capital : KRW152,950 Mil.
Business : Power Business
<PT. Tripatra Engineers and Constructors>
Add. : West Cilandak, South Jakarta, Indonesia
Representative : Mr. Pandri Prabono
Year of Establishment : 1988
Paid-up Capital : IDR1,200 Mil.
Business : Engineering, Construction and Trading
<Samtan Co., Ltd.>
Add. : Daechi-dong, Kangnam-gu, Seoul, Korea
Representative : Mr. Kang Tae-Whan
Year of Establishment : 1962
Paid-up Capital : KW15,300 Mil.
Business : Coal Supply
Add. : Kebayoran Baru, Jakarta, Indonesia
Representative : Mr. Eddie Widiono
Year of Establishment : 1961
Paid-up Capital : IDR67,637,616 Mil.
Business : National Power Generating Company