The Project Established in April 2007, PT Cirebon Electric Power (CEP) is an international consortium-led power generation project involving leading international players in the energy and infrastructure sectors in Asia, including Marubeni Corporation, Korea Midland Power, and Samtan. Each Sponsor brings to the Project their relevant industry and technical expertise, financial strength, local knowledge and market leadership. Note however that the actual ownership interests in the Company may be held through subsidiaries and other related companies of the Sponsors.
Marubeni Corporation ("Marubeni") (S&P "BBB-", Moody’s "Baa2") was founded in 1858 and is a leading Japanese general trading company with extensive experience in overseas power project developments in Asia, Europe, the Middle East and the Americas. Marubeni has also acted as EPC contractor for projects with an aggregate capacity of 72,000MW, and as an independent power producer having developed and acquired power assets with a gross capacity of 16,600MW worldwide. Marubeni is publicly listed on the Tokyo, Nagoya and Osaka stock exchanges, with a market capitalisation of USD16.0 billion (24 Sep 2007). Marubeni is a lead investor in the Project and will play a key role in the overall management of the Company and operations and maintenance of the Plant.
Marubeni has been active in the Asian power sector as developer, owner, operator and contractor. Recent acquisitions include the June 2007 acquisition of Mirant’s Philippine IPP assets and the 2003 acquisition of Sithe Asia Holdings. Mirant acquisition represented over 2,000 MW of capacity and is the largest Philippine M&A transaction to date. The Sithe acquisition involved a portfolio of power assets in the Philippines, South Korea, China and Pakistan. Marubeni is also active in operating or exploring IPP assets in Australia, Thailand, Laos, Taiwan and other Asian countries.
Korea Midland Power Co. ("KOMIPO") (S&P "A-", Moody’s "A1") was spun-off from Korea Electric Power Corporation ("KEPCO") in 2001 as part of the restructuring and privatization of the Korean power generation sector, but remains a wholly-owned subsidiary of KEPCO. KOMIPO operates power generating facilities in South Korea with a capacity of nearly 8,500MW, with another 1,500MW of facilities underway. KOMIPO is actively pursuing power generation businesses in both domestic and international markets.
Drawing on its experience working with similar technology supplied by DHI, KOMIPO will play a key role in the operations and maintenance of the Plant.
Samtan Co. Ltd. ("Samtan") was originally established in 1962 and is the product of a merger in 1995 with Korea Indonesia Resources Development Co., Ltd. Samtan is a leading Korean energy company with primary interests in coal mining, production and supply. Samtan currently operates a coal mine in East Kalimantan, Indonesia through its 49%-owned subsidiary Kideco, the third-largest coal mining company in Indonesia.
PT Tripatra ("Tripatra") is one of the largest engineering management and EPC companies in Indonesia. It specializes in oil and gas, marine facilities and offshore platforms, power generation, telecommunication, petrochemical and industrial plants. Tripatra provides valuable engineering expertise and local knowledge to the Project, and plays a key role in site acquisition activities.
In March 2007, Tripatra’s parent company was merged with PT Indika Inti Energi ("Indika") and thereafter became a wholly-owned subsidiary. Indika and Tripatra had a common shareholder group prior to the merger.
Prior to the merger, Indika’s core business was coal mining represented by its 46% ownership interest in Kideco. The recent consolidation provides Indika with additional core competence in the areas of construction and engineering, and a significant interest in power with the ongoing development of the Project.
Samtan and Indika will play key roles in securing the necessary fuel supply arrangements for the Project.
The Project will be constructed on a greenfield site located in Kanci Village of approximately 100 hectares located along the Kanci area near Cirebon City, approximately 250 Km East of Jakarta. The site can accommodate an expansion of the Plant to twice its capacity, or 2 units with a net capacity of 660MW each.
Currently, the site is comprised of a mix of agricultural and unused grasslands, with some neighbouring residential areas. Agricultural activity consists of rice and corn planting, salt farming, and fish ponds. The site is bound by the Java Sea to the north, and residential and industrial use lands to the south, east and west.
The project, which will require a total investment of US$779 million, is expected to be completed in 2011