Panaran I

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In 2003, Mitra Energi Batam began the development of a 55MW combined-cycle gas-fired project in Panaran on Batam Island. The project was developed on an independent power producer basis and supplied electricity to local industries and housing on Batam Island. State electricity company, Persusahaan Listrik Negara (PLN), was to purchase the entire output under a long term power purchase agreement with the initial power sales tariff of US$22/MWh (Rp197/kWh). State gas utility PGN was to supply 15 million cu ft per day of gas under a 15-year fuel supply contract. Mitra Energi Batam comprised the local Medco Energi Menamas with 54%, the Batam subsidiary of the state electricity PLN with 30% and the PLN-owned YPK Foundation with 16%. Medco Energi Menamas, which was an indirect subsidiary of the oil, gas and power firm Medco Energy International, purchased its stake in the project from the private power developer PT Menamas for an undisclosed amount in May 2004. The project held a PPA with PT PErusahaan Listrik Negara (PLN), in 2004. Bank Central Asia in August extended US$22 million (Rp 197 million) of debt finance with a seven-year term to Mitra Energi Batam for the project. The plant was built by PT Dalle Energy with the total project cost of US$30 million. Conversion of the plant from an open-cycle to a combined cycle facility was planned as power demand increased rapidly on the industrialized island of Batam, located just south of Singapore. The plant was equipped with two 27.75MW Rolls Royce gas turbines. The new generating plant was expected to be the lowest cost generator on Batam Island. The plant entered into operation in December 2004. In 2012, Medco was reported as holding 64% of Mitra Energy Batam, the operator of the plant. In January 2012, PT Medco sold 51% of its equity in PT Medco Power Indonesia to PT Saratoga Power, a subsidiary of Saratoga Capital - a private equity firm. Based on PT Medco Power holding 64% of the project equity, this means Saratoga now holds 32.6% of the project equity, and PT Medco International the remaining 24.3% (of the 64%), and IFC the last 7%. Power in Asia, IFC buys into Medco Power, 15 March 2012.