SINGAPORE (Yosefardi) – SGX Main Board listed ISDN Holdings Limited, an integrated engineering solutions provider for diverse industries, has through its wholly owned subsidiary Aenergy Holdings Limited, today entered into a sale and purchase agreement to acquire 80% equity stake in PT Charma Paluta Energy (PTC).
PTC engages in building, owning and operating hydroelectric plants and related businesses. The acquisition is valued for US$450,000.
PT Charma Paluta Energy has entered into a power purchase agreement (PPA) with PT PLN (Persero), Indonesia’s state-run power distribution company to build, own and operate a 4.6MW mini hydropower plant at Aek Sisira Tarabintang Sub-district, Humbang Hasundutan, North Sumatra province.
The PPA states PT PLN will purchase the energy output at a tariff rate of IDR 787 or USD$0.08 per KWh for a tenure of 20 years.
Based on the feasibility studies originally conducted, the hydropower plant is expected to generate 27GWh annually. This is estimated to generate approximately USD$2 million per year with running costs expected to cost between 0.7 and 0.5 US cents per KWh while the investment cost is projected to amount to approximately USD$10 million.
Construction is expected to commence at the beginning of next year and is expected to last 18 to 24 months. The first income stream is expected to flow in after full operations commences.