Malaysia's Genting to develop $1B Indonesian coal-fired plant
A unit belonging to Malaysia's Genting Bhd will develop a 660 MegaWatt coal-fired power plant in Banten province worth $1 billion.
"The project is expected to contribute positively towards the future earnings of Genting after the Banten plant achieves commercial operations in 2017," said the company.
Genting said its Indonesian unit PT Lestari Banten Energi signed the 25-year power purchase agreement with Indonesia's state-owned electricity company PT PLN after winning the bid.
The Banten, West Java 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.
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 population.