Multidaya Prima Elektrindo. In conjuction with Energi Prima Elektrika's acquisition, Medco Energi through Medco Power Indonesia also acquired 85% shares of this company who owns and operates a 2x6 MW capacity gas-fired power plant in Kali Doni, Palembang - South Sumatra. PPA with PLN was already signed in 2004 for a 20-year contract starting from its commercial operation date on 30 April 2008 and Medco Power Indonesia took over the management on 29 July 2010 after the acquisition. The gas-fired power plant currently supplying electricity to local industries and housing in Jambi and Bengkulu
• MPI plan to acquire 85% ownership of project with total capacity of 12MW from PT. Multisakadaya.
• The project is located in Palembang, North Sumatera
• Main objectives of the acquisition :
• Business Expansion to North Sumatera & synergy potential with other Medco projects.
• Support MPI strategy in focusing on small to medium IPP’s & captive plants
• Giving direct value added on Company’s Balance Sheet & Profil Loss since assets have been operated (EBITDA contribution estimated of IDR 37 billion/ year until 2026.
• Purchasing distress assets, where the value is cheaper than build the owned generator with the same capacity.
The total acquisition of USD 22 million will be financed by Long term debt from Bank CIMB Niaga, all transactions are accomplished on May 2010.