On 24 February, 2011, PT Bekasi Power (“BP”), wholly owned subsidiary of PT Jababeka Tbk (“KIJA”), signed an Electricity Sale and Purchase Agreement (Kerjasama Jual Beli Tenaga Listrik – “Agreement”) with PT Perusahaan Listrik Negara (“PLN”) based on an availability factor of 90%. The Agreement commences upon completion of the 130MW power plant project, which is expected to be in Q4 2011, and a 150 kV transmission line will be used to distribute the power between BP and PLN. Based on the Agreement, BP can buy back power from PLN in order to guarantee power supply from its operational area in Jababeka’s Industrial Estate.
Current progress of the power plant stands at 85%, 2 Gas Turbines are already installed, tested and commissioned and have a combined capacity of 80MW. Remaining works take approximately 8 months and include the installation, testing and commissioning of the Steam Turbine Generator that completes the 130MW combined cycle plant.
The project is financed through a US$ 106 million equivalent Loan Syndication (“LS”) and US$ 35 million equity. US$ 40 million remains undrawn from the LS and such is sufficient to complete the project. The LS is payable in 5.5 years and principal amortization will commence 3 months after 130MW Commercial Operations Date. With the Agreement, KIJA can drawdown from the LS and ascertain completion of the project.
Impact on KIJA
BP will contribute US$ 85 million annually to KIJA’s revenue and EBITDA margin is estimated at more than 30%. Hence, KIJA’s earnings will be more stable above US$ 150 million and less dependent on more volatile real estate sales.
KIJA’s Industrial Estate is more attractive to manufacturing companies because of a guaranteed power supply. High marketing sales in 2010 are believed to be the result of the presence of the power plant, but also the Cikarang Dry Port (“CDP”). CDP, as well as the power plant, strengthens KIJA’s earnings stability and position as the preferred industrial manufacturing destination for multinational and local companies alike.
Cikarang Dry Port is 100% owned by KIJA and offers a one-stop integrated port and logistics services for cargo handling and a logistics solution for international export en import as well as domestic distribution. CDP is appointed as the first Integrated Customs Services Zone (“KPPT”) serving as point of origin and destination, and was appointed as the first spoke port in the government’s Customs Advance Trade System program, which intends to decongest Tanjung Priok International Seaport and comply with international standards. Current capacity stands at 150,000 TEU and eventually the Dry Port will cover 200ha that can handle 2 million TEU.