KUALA LUMPUR: Mudajaya Group Bhd’s indirect 95%-owned subsidiary PT Mudajaya Energi Indonesia plans to develop and operate 2x7 MW coal-fired steam power plant in Manokwari, West Papua of Indonesia by acquiring a controlling interest in PT Harmoni Energi Indonesia Manokwari (PT HEIM).

Mudajaya, which is involved in sectors ranging from construction to power, told Bursa Malaysia that PT Mudajaya Energi had signed a conditional agreement to buy 73.69% equity interest in PT HEIM, which has a power purchase agreement (PPA) with PT PLN (Persero) Wilayah Papua Dan Papua Barat, from PT Indomuda Satria Internusa (PT ISI).

Under the PPA, PT HEIM will develop the plant on a build-operate-own basis for 25 years from the commercial operation date. The financial close pursuant to the PPA is Oct 26, 2016.

The proposed acquisition is subject to certain conditions precedent (CPs) in the conditional sale and purchase agreement, which include satisfactory results of financial, legal, technical and commercial due diligence exercises.

The consideration sum for the proposed purchase will be agreed by all parties upon satisfactory completion of the CPs and due diligence exercises.