The Jakarta Post | Mon, 02/27/2012 7:23 AM
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The International Finance Corporation (IFC), a member of the World Bank Group, has acquired an 11 percent ownership interest in power producer PT Medco Power Indonesia from investment company Saratoga Capital.
“The investment is worth around US$25 million. We have signed the deal,” Communications officer of IFC Indonesia’s corporate relations division Novita Wund said.
This investment is part of a $112 million equity investment arranged by a consortium of financial investors led by Saratoga Capital to provide growth capital to Medco Power.
Last December, PT Saratoga Power, a part of Saratoga Capital, acquired a 51 percent stake in PT Medco Power Indonesia, a subsidiary of publicly listed energy company PT Medco Energi Internasional Tbk. Saratoga, a leading Indonesia-focused private equity manager headquartered in Jakarta, agreed to pay Medco Energi for divestment in Medco Power in two stages; $87 million on the day of the deal and $25 million early this year.
“Saratoga and IFC’s partnership has gone back a long way and we are excited to be working closely with them through this investment in Medco Power Indonesia,” Saratoga Capital co-founder Sandiaga Uno said in a written statement.
IFC Country Manager for Indonesia Sarvesh Suri said that infrastructure development in power and clean energy had become one of IFC’s focuses.
“IFC’s investment in Medco Power will help catalyze private sector investment in Indonesian’s independent power producers, while demonstrating the viability of cleaner-energy sources in this country,” Suri said.
IFC said that the investment would help Medco Power to complete its plans of constructing five additional power projects, which will increase the company’s total generation capacity to approximately 390 megawatts. Medco Power currently runs gas-powered power plants in Batam and South Sumatra with a
total capacity of 250 megawatts.
Medco Power recently said that it would develop other gas-powered power plants in Batam, Central Sulawesi and West Sulawesi this year. The company aims to run additional power plants to obtain a total capacity of 1,000 megawatts by 2015.
—JP/ Raras Cahyafitri