Ratchaburi Electricity Generating Holding Plc (RATCH) has signed an agreement with PT Truba Alam Manunggal Engineering Tbk (TRUBA) to conduct a due diligence and evaluation process on a coal-fired power plant project in Indonesia.
Noppol Milinthanggoon, managing director of RATCH, disclosed that the Thai company and Indonesia’s TRUBA had signed the memorandum of understanding (MOU) on March 18 to commence the process of evaluation on developing the Kuala Tanjung Power Plant Project towards the potential investment and acquisition in the project.
Noppol said, “The 270-megawatt Kuala Tanjung Power Plant is the coal-fired power plant project located at the coal mine in Kuala Tan Jung, North Sumatra, Indonesia. It is RATCH’s first step for developing the power projects and other related businesses in Indonesia.”
According to the MOU, RATCH will conduct the due diligence process and evaluate all existing documents and evidence of the project towards the potential investment and acquisition into the project.
The Thai company is expected to take 40 percent of the stake in the 274.3-million-dollar Tanjung Power Plant, whose commercial operations are scheduled to be in 2010 when electricity from the power plant will be supplied to Indonesia’s government-owned electricity company PT.PLN (Persero).
RATCH is Thailand’s biggest independent power producer which is 45 percent owned by state-run Electricity Generating Authority of Thailand and 15 percent by the country’s leading coal mining operator Banpu.
RATCH has the total capacity of 4,347 megawatts from its investment in many power plant projects both in Thailand and overseas.