French power giant EDF eyes Asian countries<\/p>\n
SINGAPORE (Reuter): The world's biggest power company,
\nElectricite de France, plans to leap into Asia over the next five
\nyears, spending US$1 billion on power stations and grids, its
\nSoutheast Asian representative said yesterday.<\/p>\n
Pierre Moriette said state-owned EDF was considering a major
\ninvestment in Indonesia and ventures in the Philippines and
\nThailand, plus previously announced projects in Laos and China.<\/p>\n
\"All over the world we are looking in five years at having
\nsomething like two or three billion U.S. dollars invested,\"
\nMoriette told Reuters in an interview.<\/p>\n
\"Asia is the fastest-growing area so some significant part of
\nthat total, say 30 to 50 percent, will be in Asia,\" Moriette
\nsaid. \"In China and the Southeast Asia region we would want up to
\nabout five percent of the electricity market.\"<\/p>\n
A monopoly generator and distributor of electricity in France,
\nEDF has used its position at the hub of Europe's transmission
\ngrids to become a major exporter of power to its neighbors.<\/p>\n
But Moriette said the cash-rich utility needed to expand out
\nof its traditional homeland if it is to make anything like
\n\"commercial\" rates of return.<\/p>\n
EDF is looking at projects worth up to US$1 billion in a range
\nof Asian countries, each requiring an investment of US$100
\nmillion for about one third of the equity.<\/p>\n
\"The ideal maximum initial investment would be about US$100
\nmillion, representing about 30 percent of the equity. Assuming a
\nrough 70-30 debt-to-equity ratio, that puts the total venture at
\nabout one billion US dollars,\" Moriette said.<\/p>\n
EDF is looking closely at the planned privatization and break-
\nup of Indonesian state-owned electricity company PT Perusahaan
\nListrik Negara (PLN) for just such an investment.<\/p>\n
\"I think we would be most interested in the transmission part
\n(of PLN), to become a shareholder,\" he said. \"We might want to
\nget into it by taking about 15 percent, or more, if that would be
\nacceptable.\"<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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