Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) announced its successful expansion into Indonesia by awarding the natural gas-fired combined-cycle Riau power plant with 275-MW capacity.
RH International (Singapore) Corporation Pte., Ltd. (RHIS), RATCH’s indirect subsidiary, already entered into a shareholder agreement with PT Medco Power Indonesia (MPI) to established PT Medco Ratch Power Riau (MRPR). Owned 49% equity by RHIS and 51% by MPI, the company will operate the Riau power project. On April 7, 2017, MRPR signed the 20-year term Power Purchase Agreement of Gas-Fired Power Plant 275 MW Independent Power Producer in Riau with Perusahaan Listrik Negara (PLN).
Mr. Kijja Sripatthangkura, RATCH CEO, views this marks key milestones for RATCH in expanding business internationally according to the corporate strategy. Indonesia is strategically placed as the promising investment destination, with potential opportunities lying ahead for power and energy business. In addition, the synergy with MPI, an Indonesia’s leading power firm, helps support decision making by the Indonesian government in selecting RATCH as the co-developer.
Mr. Kijja added:
“MRPR, a co-investment company with 12-billion-rupiah (US$0.9 million) registered capital, will develop, construct and run the Riau power project. The project cost is valued about US$300 million, which will be funded from two sources; 25% of capital and 75% of debt financing.
Concerning the project risks, RATCH has thoroughly assessed relevant probability and minimized exposure to acceptable level. It is confident that 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.”
Located in Riau province of Sumatra Island, Indonesia, Riau IPP power plant will generate about 1.446 million GWh per year. It will help secure the Indonesia’s power system, thus benefiting its economic and social development over the long run.