Powertron Resources Sdn. Bhd.

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Powertron Resources Sdn Bhd (PRSB) developed a 120 MW open-cycle gas power plant at Teluk Salut near Kota Kinabula, Sabah. Powertron was to sell power to Sabah Electricity Sdn Bhd (the electricity utility for Sabah State) under a 21-year power purchase agreement (PPA) signed in February 1997, though the terms of this were superseded by a new PPA signed in February 2005. In 2003, Ranhill group acquired Powertron Resources. Once completed, this was the largest power plant in Sabah, supplying 40% of demand. PSRB was a joint venture between Time Engineering (40%), EPE Power (a subsidiary of Ranhill Power Bhd, 30%), state-owned Sabah Energy Corp. (20%) and Aras Energy Setia (10%). In December 2003, Ranhill purchased Time Engineering’s 40% stake. In 2004 EPE Power changed its name to Ranhill Power Phd to reflect Ranhill’s 90.1% stake. The cost of the initial 120 MW plant was RM 370.2 million (US$110.8 million). Financing was obtained from a RM 329 million loan from DCB Bank (Malaysia), arranged by RHB Bank. Construction of the original 120 MW plant was completed in 1998. Konsortium GEPSI-GEPSM-Peremba Kentz Engineering Sdn. Bhd. was the engineering, procurement, and construction (EPC) contractor, and EPON Power Generation (Netherlands) was to supervise construction and undertake operation and maintainenace functions under two seven year contracts worth F13 million ($6.5 million). Powertron intended to expand the plant into a 190 MW combined cycle station. The expansion was completed in early 2007. Note: