This article first appeared in The Edge Financial Daily, on December 23, 2015.

KUALA LUMPUR: YTL Power International Bhd, a subsidiary of YTL Corp Bhd, has bagged a US$2.7 billion (RM11.64 billion) contract to build two units of 660mw coal-fired power generating facility in Cirebon, West Java, Indonesia, under a power purchase agreement (PPA) for 30 years.

In a statement yesterday, YTL Power said its 80%-owned subsidiary PT Tanjung Jati Power Co Ltd on Monday signed a PPA with PT PLN (Persero) to restate and amend the original PPA that was entered into on April 2, 1997, for the proposed project.

Under the deal, YTL Power will also sell energy and capacity from the facility to PLN.

According to YTL Power, the PPA for the Tanjung Jati “A” coal-fired independent power project will be for a term of 30 years expiring in 2051.

“The project is expected to contribute positively to the earnings of the YTL Power group,” it said.

The project will be YTL Power’s second investment in Indonesia. It made its first Indonesian venture in 2004, after purchasing a stake in the 1,220mw Jawa Power project through its wholly-owned subsidiary PT YTL Jawa Timur.

YTL Power owns a 57.14% stake in YTL Jawa Power Holdings BV, which in turn owns 35% of the Jawa Power project.

“YTL Power is pleased to be able to assist in realising [Indonesian] President Joko Widodo’s bold vision of putting 35,000mw on the grid in the next five years,” YTL Power managing director Tan Sri Dr Francis Yeoh said in the statement.

Yeoh said the project will utilise state-of-the-art coal-fired technology and will be among the most efficient of the new generation of plants in the Indonesian system.

“We are very much looking forward to working with PLN to get this project built and exporting much needed energy into the grid,” he added.

Shares in YTL Power closed one sen or 0.68% lower at RM1.45 yesterday, with a market capitalisation of RM11.19 billion.